There can hardly be a more important purchase than a new home. Since will be the place where you spend the most time, everyone wants to find a property they love, that works for them and that they can afford. Thankfully, Calgary and area has lots of options when it comes to real estate, and buyers are rarely left without choice. Locating your forever home is only half of the process, though. You must also be able to finance your purchase.
For many it has taken years of hard work and saving to be able to put down a down payment on a new home. So, once you find what you hope to be your long-time family address, you want to make sure you follow through on all the necessary steps in order to ensure you one day take possession. It takes time and energy to apply for pre-approval and the process can seem arduous, complicated and very obscure – especially for first-time buyers – but Mortgages By Candice takes the time to simplify the procedure for you and is always available to answer your questions.
There are five common mistakes those in the process of buying a home make during the pre-approval stage that could result in them disqualifying for their potential mortgage. Avoid these errors for a smooth closing!
1. Maxing Out Credit Before Taking Possession
More and more often lenders are performing last-minute credit checks when it comes time to close on your real estate deal. Your credit was checked when you applied for pre-approval, but may also be looked up again come possession day. So, if you have accrued more debt or have missed or were late for a payment on your credit card since you applied for pre-approval, your real estate deal could be threatened. Do your best to stave off making purchases on credit such as furniture or appliances until after closing is complete.
A benefit of using a mortgage broker is that they only check your credit once before sending your application to the lenders they work with. Most people are not aware that each time a separate lender requests your credit information your credit score is negatively impacted. By using a mortgage broker, you circumvent this issue, and Mortgages By Candice’s multiple lending partners enable you to access the best possible terms, prepayment privileges and interest rates in today’s marketplace — something single lenders cannot provide.
If you like, you can check your credit rating on your own without penalty using resources such as Equifax and TransUnion Canada.
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