5 Tips for an Easier Mortgage Application

Getting a mortgage loan can be challenging these days. Rising interest rates, higher costs, and stricter bank regulations have made it harder for many to get approved. However, there are several ways to increase your chances of securing a home loan. In this article, we share 5 valuable tips to help you succeed in your mortgage application.

1. Check How Much You Can Borrow in Advance

One of the first steps before house hunting is determining how much you can borrow. Banks use specific ratios to assess how much of your income can go toward repaying your mortgage. It's important to know your borrowing capacity beforehand, so you can search for homes within your financial range. This helps prevent disappointment and ensures you don't overextend yourself financially.

2. Increase Your Disposable Income

Your creditworthiness is also evaluated based on any existing debts, such as personal loans or credit card balances. The fewer debts you have, the better your chances of loan approval. If you have any short-term debts, try to pay them off before applying for a mortgage. Lowering your monthly expenses gives you more room to afford a mortgage, which improves your chances of approval.

3. Have a Solid Savings Cushion

It's almost impossible to borrow the full amount for a home purchase. Banks expect you to contribute a certain percentage of the property price yourself—usually between 10% and 20%. This is essential not only for the loan but also for covering additional costs, like notary fees and registration taxes. The more you can pay upfront, the higher your chances of securing a mortgage.

4. Pay Attention to the Property's Energy Score

In some regions, such as Flanders, properties with poor energy efficiency ratings must undergo renovations within five years. This can impact your mortgage, as the bank will consider the additional costs for these energy upgrades. Buying a home with a good energy rating can give you an advantage, as you won't need to spend as much on renovations. A home with a strong energy performance will not only help reduce future costs but also increase the likelihood of mortgage approval.

5. Compare Different Lenders

Each bank has its own criteria and interest rates. It’s important to compare different lenders to find the best deal. This allows you to secure the best terms and find the mortgage that best suits your situation. You may also want to consider using a mortgage broker who can help you compare options and prepare your application as effectively as possible. This saves you time and boosts your chances of getting approved.

Conclusion: Increase Your Chances of Mortgage Approval

By following these 5 tips, you can significantly improve your chances of securing a mortgage. From calculating your borrowing capacity to comparing lenders, you can optimize your application and increase your chances of success. Be well-prepared so you can quickly move forward with buying your dream home.