Are you ready to jump from renting a home or apartment in Vancouver to owning a home? The first step is applying for a mortgage, but how can you know if you'll qualify a mortgage? In this article, we will try to help you understand the process.
Qualifying For A Mortgage Vancouver
Before completing a mortgage application, you'll want to know the mortgage requirements in Vancouver.
- Your monthly income
The first step is to document your debt payments and monthly income. You'll need to provide your lender at least two weeks of pay stubs. If you have variable income or self-employed, expect the underwriting process to be a bit more involved.
- Your credit score
As for your credit score, your FICO credit score should be at least 680. Anything less, you may need to take time to improve your credit or find a highly qualified cosigner before getting mortgage approval. Note that the lower your credit score, the higher the rate you'll pay.
- How much cash you can put down
Before you apply for a mortgage in Vancouver, you need to determine how much you can save for a down payment. Most mortgage lenders will demand at least a 10 percent down payment in today's market unless you're getting an FHA loan.
- How much house you can afford
It would be best to determine how much you can pay comfortably and how much home you can afford before ever speaking with a mortgage officer. It's recommended that your total housing payment should be no more than 35 percent of your gross (pre-tax) income.
When To Apply For Your Mortgage
You can meet with a lender and get pre-qualified at any time. During this process, your lender will check your credit score, income, and other factors to decide if you qualify for a mortgage. It's informal and non-binding.
Getting Pre-Approved And Qualifying For A Mortgage
You need to seek pre-approval as you get closer to buying a home. You can meet with a local bank, mortgage broker, or credit union, give them information about your income and expenses, and they do the calculation for you. They will let you know your ability to get approved for a mortgage. Most lenders will want to see your pre-approval within a couple of days of receiving your offer.
Ready For A Mortgage?
Researching how to qualify for a mortgage is to take a look at your finances. How big is the mortgage you trying to get? What is the interest rate? Are you currently paying any debt that could impact your ability to qualify? You need to answer these questions if you want to pre-qualify for a mortgage in Vancouver.
If you need a mortgage in Vancouver, contact Adkins Healey & Associates. We use technology to ensure you get the best rate. Once you're pre-approved, we'll match you with a Home Loan Advisor who helps you through each stage. To see if you'd qualify for a mortgage, you can contact us at 604.617.4200 for help.