Getting Your Financial House in Order for Spring

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