As we move into the spring housing market, preparing your finances is crucial. Here’s a guide to positioning yourself for mortgage success.
Pre-Approval: Your Foundation Getting pre-approved isn’t just a formality – it’s your competitive edge in the market. Here’s what Alterna is looking at:
Downpayment documentation: clear proof of funds and their sources
Income verification: last 2 year’s T4s and recent pay stubs
Credit profile: current score and credit history
Debt service ratios: Your total debt compared with total income (ability to pay)
TIP: Get pre-approved early, but note, many expire after 90-120 days, so consider when you want to purchase to ensure it doesn’t expire too soon
Credit Score Optimization: Your credit score directly impacts your mortgage rate. A strong credit score can save you thousands over the term of your mortgage.
Quick wins for credit enhancement:
Keep credit utilization below 30% of available credit
Maintain consistent, on-time payments
Avoid new credit applications when house hunting
Review your credit score for free to check for errors (Equifax or TransUnion) Read more
