5 Tips To Get Your Mortgage Approved the First Time

So, you’ve found your dream home and you’re ready to take the big step toward homeownership. But before you pop the champagne, there’s a crucial hurdle to clear: getting your mortgage approved. Don’t sweat it, though! With the right approach, you can increase your chances of sailing through the process with flying colors. Here are five tips to help you secure that coveted mortgage approval on your first attempt.

1. Tidy Up Your Finances: First things first, let’s do a quick financial declutter. Lenders will take a peek at your financial history, so it’s wise to tidy up any loose ends. Pay off outstanding debts, ensure your credit score is in tip-top shape, and avoid making any major purchases before applying for your mortgage. A clean financial slate will signal to lenders that you’re a responsible borrower. Remember – we need 90 days history for your down payment – so this tip includes not moving money between 17 different bank accounts in the 3 months before you put in an offer, either.
2. Get Your Paperwork in Order: Nobody likes paperwork, but when it comes to getting your mortgage approved, it’s a necessary evil. Gather all the required documents, such as pay stubs, last 2 years tax returns, 90 days bank statements, and any other financial records. Having these ready to go will streamline the application process and impress the lender with your preparedness.
3. Shore Up Your Employment Stability: Lenders love to see a stable employment history. If you’ve recently changed jobs, don’t worry – it’s not a deal-breaker. Simply providing a solid work history and demonstrating a reliable income can work in your favor. Pro tip: Avoid any major career moves or shifts during the mortgage application process, if possible.
4. Mind Your Debt-to-Income Ratio: Your debt-to-income ratio is a key factor in the mortgage approval process. Lenders want to ensure that you’re not overburdened with debt, so it’s beneficial to keep this ratio as low as possible. Consider paying down existing debts and avoiding new ones to show that you’re in a comfortable financial position.
5. Partner with a Trusted Mortgage Professional: Navigating the mortgage landscape can be daunting, but you don’t have to go it alone. Partnering with a reputable mortgage professional can make all the difference. I’ll guide you through the process, offer valuable insights, and help present the strongest possible case to the lender.

In conclusion, securing your mortgage approval on the first try doesn’t have to be a nerve-wracking experience. By taking a proactive approach, you can position yourself for success and move one step closer to unlocking the door to your new home. Remember, a little preparation goes a long way. Cheers to your future as a happy homeowner!