Are you ready to jump in and purchase a home and your first mortgage? Or are you re-financing your home loan and want to ensure everything is all lined up so you have a smooth process? Here are some basic steps to ensure you’re getting your ducks in a row and you have a smooth mortgage loan application process.

1. Get Your Credit Straight

The lenders need your credit to be in good conditions, so if you have bad credit ratings you need to get your skates on and get a good credit score happening to ensure you are squeaky clean and in a good position to be approved for a mortgage. While you might not be aware of the best score, you need to do the research and get your score about 720+ to be in good stead with lenders.

2. Get Your Documentation in Order

You will feel like you will be getting a mound of paperwork ready for your lending and mortgage application but fear not, but ticking all the boxes and having all the required paperwork the process with being a smooth one for you. Get all of your necessary documents from your accountant such as tax returns, pay slips and copies of required documents including bank statements, savings account statements and anything else that will help you to qualify for your mortgage.

3. Reduce Your Debt-to-Income Ratio

While you are getting yourself sorted and ready to apply for your mortgage you should work on reducing your debts so your debt to income ratio is lower and you look a little better on paper. Have you got any personal loans you could pay off or a car loan you can get rid of, or do you have a credit card that could be paid off so that on paper you look like a great candidate for a mortgage?

4. Save Your Cash

In the mortgage industry, cash talks so save as much as you can so you have cash in the bank. Most lenders will want to see 10% or more of the purchase price before they even consider a mortgage for you, so aim to save up big time so you have plenty of cash in the bank when you’re ready to buy your home. You might just want to jump in there feet first, but do some planning and consider when you do have a mortgage you will need to pay rates and all the expenses of maintaining a home, so having a slush fund will be a helpful addition if you need some extra cash.