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Mortgage Home Purchase

What to do when your mortgage does not come through

The reality is that some people find themselves in a situation where their financial or credit situation is such that even I cannot help them with their mortgage. It is a very hard thing to hear, and for me, it is very hard to say. We try so hard to make things work. But sometimes the best option is to stop, regroup, and plan for the future.

So let’s talk a little bit about the things you will need to do make it easier to successfully finance your dream house.

Work on Your credit

The number one factor to being able to successfully fund your dream is having a solid credit score. You need to be aiming for a score above 700 if you want lenders to offer you their best rates. The best advice I can give you is to stop hunting for new credit, make all of your payments on time, and keep the balances on your credit accounts low. There is no quick fix to your credit score (with the exception of paying down your debt), so the sooner you start the better.

Work on a mortgage budget that makes sense

At the end of the day, you need to be able to afford to live in the property that you are looking to buy. Lenders want to see your obligations come to less than 42 to 44 per cent of your gross income (before taxes). Make sure that you understand what it will cost to live where you are looking. Accept that you may need to adjust your expectations to fit your lifestyle.

Work on your mortgage down payment

The amount of skin you have in the game will have a huge influence on whether you get approved. The higher the down payment you have, the more comfortable lenders will be. Down payments over 20 per cent will also allow you to bypass many loan insurance requirements and help you save money in the long run.

We would love an opportunity to sit with you and help you plan for your future home purchase. Please, contact us and schedule an appointment today.