Applying for a mortgage to buy a new home may seem like an easy approach however there are certain things which people end up doing which leaves them with getting a negative response on their mortgage.
Cleaning your credit cards
The first thing which people should pay heed to is how much in their credit score before applying for a mortgage? When you are applying for a mortgage you need to make sure that you have paid down your credit cards. Check out the credit reports on your cards and fix any issues you find immediately any red marks found on the records can deny you the mortgage so be careful.
Do not apply for new credit right away
After you clean up your credit card do not apply for unnecessary credit before you settle your mortgage. This means that do not use your credit to buy a new car or furniture or anything. Also do not carry a balance which is more than 25 percent of the cards limit on any account. Use a mix of cards if you have more than one and you should pay off or below the 25 percent of the limit when the bills arrive.
Open a separate account to hold your down payment
When you will be applying for a mortgage it is safe to say that you will be forking over a huge chunk of cash. What you should know is that the funds you have collected for the down payment and the closing costs should not be kept in the main account. Open a separate account just for that and make sure that there has been no transaction in it for the past two months. Banks can delay the loan and ask for more paper work since the previous two months of info is scrutinised. You will be saving yourself a lot of time this way. For more queries on the same log on to www.kamloopsmortgageadvisor.ca and www.ryanwsmith.ca