One of the first steps to purchase a Kelowna home is to get approved for a mortgage. Before you start your search for Kelowna real estate, it’s important to talk to a Kelowna mortgage broker to determine how much you can afford. If you have been turned down for a mortgage before, it could be due to one of these 3 reasons. By changing a few things, you could go from no mortgage to purchasing your very own Kelowna real estate. So what are the three main reasons people get turned down for a mortgage?
Low or Bad Credit Score
One of the main reasons people tend to get denied a mortgage is due to their credit score. The great thing about this is that your credit score can be improved! So even if you have no credit at all or you have a bad credit score, don’t worry! Fix your credit score by starting off paying off your debt. Catch up on your late payments, pay off whatever you owe on your cards, pay off high interest cards first and voila! Not only are you paying off your debt, but you are also helping your mortgage application.
Not enough money saved for Kelowna real estate
If you are looking to purchase Kelowna real estate, it’s important to have money saved. In order to purchase Kelowna real estate, you need to have a down payment. In order to determine exactly how much you need to put down, speak with your Kelowna mortgage broker prior to writing an offer on Kelowna real estate. Once you know exactly how much you need to put down, speak with your Kelowna realtor to be aware of closing costs. Again, the positive thing about this point is that that doesn’t mean you can never qualify for a mortgage. Start saving today and develop a plan in order to save exactly what you need to!
Too Much Debt
One last reason why people don’t qualify for a mortgage is due to them having too much debt. If you are trying to qualify for a mortgage, try paying off your debt first. This goes hand and hand with the credit score point, as most debt is on credit cards. Knock two points off in one! Pay off your debt and increase your credit score all in one! Similar to the first point, set a budgeting plan and figure out exactly how much per month you need to put aside to pay off your remaining debt.
If you are looking to purchase Kelowna real estate, we recommend going to see a Kelowna mortgage broker to begin your mortgage application. From there, you will know exactly how much you can qualify for and if you need to make any improvements before purchasing a Kelowna home. We work with some of the top mortgage brokers in town who we highly recommend. Contact one of our knowledgeable real estate agents today to begin your home buying process today. Call 1-778-760-2860!