There are very few people who can manage to purchase a home, whether it's a Brampton house for sale or a Portsmouth condo, without a mortgage. This means that whether or not you get the house is dependant on your lender's approval of your application. To make it more likely that your application receives a "yes," we've outlined some mortgage application tips.

Know Your Stuff

Before you put your Toronto resale home on the market and start looking for a Portsmouth one, take a good hard look at your finances before you submit your application and try to see yourself through the bank's eyes. Do you look like a good investment? Would you trust you to make your payments on time? Make sure to get a copy of your credit report and look over it with a financial professional if you don't understand it. Check for any errors that may paint you in a bad light.

Old Debts

While it is nearly impossible to go into a mortgage application completely debt free, you should pay off as many old debts as possible. This means paying that outstanding invoice from the Etobicoke real estate brokers you hired last year, paying off the balance on all your credit cards, and making sure you are up-to-date on payments for cars, student loans, and insurance. Also don't close out old credit cards or open up new ones, as it looks suspicious.

Your Job

The biggest factor (to a bank, anyway) that will determine whether you will be able to meet your payments is your paycheck. Whatever you do for a living, whether it be renting out High Park real estate in Toronto or writing web articles from home, your job should provide steady income and good job security to look good to a bank. If you need to switch jobs, do so well in advance of your mortgage application so as not to look like a person who frequently changes jobs.

Be Reasonable

Lenders aren't likely to approve you to buy a mansion when your income suggests you can only afford a townhouse. Mississauga lenders also know when you're lying to them and could charge you with fraud. Good rules to go by are: have a down payment of at least 20% of the purchase price, don't spend more than 30% of your income on monthly mortgage payments, disclose everything, and apply with several institutions to see where you can get the best interest rates.