Current rates are attractive and it’s never been easier to get a home loan, thanks to competition in the lending market that led to less stringent qualifications and requirements. Now, people are starting to think: “Well, what a perfect time to get that new (or second) home.” Indeed it is! But what many fail to put into the equation is the effort it entails to get past the process of mortgage approval.
Cheap rates and loose qualifying requirements combined created a boost in purchase and refi stats in the past months. Competition is tough, especially now that a significant part of the population is trying to regain what they have lost during the crisisthat hit the country in 2008. Even more searing is the tight supply of available housing. This means vying for properties against competitive investors who are willing to put in serious cash.
We are at a paradox. But that doesn’t mean getting a loan approval is impossible. One good thing to remember however, is once you get that approval, make sure you keep it until the deal is sealed. So how to not mess it up?
Here are some helpful tips to make sure your mortgage approval process goes on a breeze:
- Avoid big property purchases e.g. getting a car loan or switching to bigger leases
- Always pay your bills
- Always document your bank deposits
- Avoid large fund transfers across your bank accounts
- Avoid opening new credits
- Do not go freelance, at least not yet
- If you can keep it at the moment, stay in your job
- Never accept cash gifts, at least without going through the proper paperwork
It’s one thing to get approved for mortgage; it’s something else to keep it. A seemingly harmless financial engagement can make or break your deal. And while there are life factors that are beyond your control, it pays to be cautious and mindful of the ones that you can.