Tips for Getting Your Mortgage Approved

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Applying for and getting your first mortgage can be slightly intimidating for anyone. However, you can avoid a number of the more stressful points and improve your chances of being approved by being prepared. By going into the application process knowing what lenders are looking for and knowing how to increase your chances of approved for a mortgage. Read on to find out how to make your mortgage application process that much easier and improve your odds of being approved.

The Pre-approval process:

The pre-approval process can start anywhere up to 120 days before you plan on buying a home. This length varies by lender, but during this time the lender’s pre-approval is guaranteed. Preapproval is the first step to getting a mortgage, and it doesn’t generally take that long to complete. To get  a mortgage pre-approval, there are many documents that you have to provide which will give your lender or mortgage broker with the information that they need regarding your income, the source of your down payment, as well as your assets and liabilities. The lender will also look at your credit report to determine your credit-worthiness.

Important Terms to Know Before Applying for Your Mortgage:

  • Capacity:   Capacity is debt servicing. For example, the cost of your residence shouldn’t exceed 30 percent to 32 percent of your gross income. Your total debts shouldn’t exceed 40 percent to 42 percent of your gross income. There are some exceptions on a case by case depending on the lender product, credit history, Loan to value (LTV), property location and property type.
  • Credit History:  Your mortgage lender will want to make sure that you have a proven history of making your payments on time in the past.
  • Collateral:   When you apply for a mortgage you are putting your house up as collateral.
  • Capital:  The lender will look into what assets have you accumulated throughout your lifetime.
  • Character:  This is a look at the four factors listed above, and for example, how long have you been in your job, what type of job you have and how long you have lived in your current residence.

If you are planning on applying for your mortgage there are a few things that you should keep in mind in the months, even year leading up to your application.

  • Avoid Changing Jobs 

    It is also vital that you can prove that you have a steady income and stable employment. In other words – don’t change your job within six to eight months of applying for a mortgage. The financial institution will look at your employment stability. That said, depending on the industry you work in if it’s a natural progression, the change of jobs will most likely be looked at in a different light.

  • Build Up a Good Credit History

    Getting approved for a mortgage will be quite difficult If you don’t have enough credit, or you have bad credit. Especially a mortgage that does not include high-interest rates. Your credit history is a significant factor when determining if you qualify, so this is a step that you will want to ensure you have covered.

  • Check Your Credit Report  

    Similarly to the point above, making sure that your credit report is correct is a crucial step in setting yourself up for success. Credit report errors happen all the time. Unfortunately, they can take a while to fix because of how important your credit report is this is something that you should do once a year or so. This way you can make sure that your credit report is correct regardless of what kind of financing you are seeking.

  •  Avoid Making Any Excessive Purchases:

If you know that you are planning on applying for a loan, you do not want to max out your credit card debt or purchase lavish cars. These additional                debts will impede the amount of the mortgage that you qualify for.

  • Have and Bring In All Verifiable Information 
    One of the best ways to reduce the stress, time and worry when applying for a mortgage is to go into your meeting with the mortgage broker prepared. Bring all of your information regarding your income, recent tax assessments, debts, and employment available and ready to go before your meeting.

Providing the information listed above will help to increase your chances of being approved for a mortgage. Be sure to ask your mortgage broker any questions that you might have as they will be able to provide insight as to how each factor impacts your application, as well as how you can increase your likelihood for approval. If everything goes smoothly and you get final mortgage approval, you’re on your way to closing!


Willliam Harries,  Principal Mortgage Broker,  The Mortgage Centre – Sky Financial Corporation



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About Sky Financial

We incorporated The Mortgage Centre-Sky Financial Corp. in August 1992 in Edmonton Alberta. Furthermore we opened offices in Fort McMurray, Cold Lake, Grande Prairie, Red Deer, Stettler, Saskatoon, Moose Jaw and Prince George BC.

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