Raising Chances of Mortgage Pre-Approval

Mortgage Application Approved Stamp Showing Home Loan Agreed

If you’re a potential homebuyer looking to set yourself apart from the competition, one great avenue to take is often a mortgage pre-approval. This process, which we’ve gone over in this space before, is about meeting some basic requirements and getting a general idea of what your finances will allow you to be approved for in the home loan sphere, plus showing sellers that you’re serious about making an offer.

At Altius Mortgage and our partners at Mortgage Ogden, our mortgage brokers will help you with the pre-approval process. Not everyone gets pre-approved – here are some tips for helping increase your odds of approval.


While still handling monthly expenses, trying to reduce some of your outstanding debt can go a long way. This boosts your credit score, a big factor in pre-approval, and demonstrates a positive payment history to potential lenders.

However, be sure to take a proper strategy when paying down debt. Handle delinquent accounts first to improve credit score, then move on to paying off high-interest debt next.

Credit Report Mistakes

Credit reports are not always perfect, and it’s common for minor errors to show up. Go over your report carefully, and look for any false or incorrect information. If any of this is present, correct it immediately – this will help eliminate roadblocks in the homebuying process.


Buyers will generally need to provide a few documents during the pre-approval process. These include two years of federal tax returns, two years of W2s, 30 days of pay stubs and 60 days (or a quarterly statement) of all assets in checking, savings and investment accounts. Ensure you have all this documentation in the proper places before applying for pre-approval.


If you’re considering mortgage pre-approval in the near future, try to avoid taking on new debt or opening new lines of credit. In fact, look at the reverse: Try to lower spending and stick to a slightly tighter budget.

For more on how to approach mortgage pre-approval or to find out about any of our other services, speak to the pros at Altius Mortgage today.

Long Term Homeownership Benefits

Holding out house keys on a  house shaped keychain

To buy, or to rent? The decision often isn’t a simple one for many people, with factors like income, future plans, expenses and many others playing a big role in which route you take.

One major advantage to homeownership that many people don’t spend enough time considering? Long-term financial benefits. Recent studies have shown a massive gap between homeowners and renters in terms of net worth and returns on investment, indicating that if you are able financially, owning a home is the far preferable option. At Altius Mortgage and our partners at Mortgage Ogden, we can help you toward your ultimate goal of homeownership. Let’s look at why this is a justified pursuit.

Study Numbers

As of December 2013, the US Census Bureau pegged the median net worth of homeowners in the country at just short of $200,000 ($199,557 to be exact). In stark contrast, the median net worth of renting households was over 90 times less – just $2,208. Due to the way the economy has rebounded since it’s a fair assumption that this gap has grown even further.

Another study from the US Federal Reserve confirmed these findings, showing that between 2010 and 2013, the gap between homeowner and renter net worth grew by nearly $40,000, from $182,000 to over $220,000.

Interpreting Results

We have to take these results with at least some grains of salt, to be sure. We have to consider that many homeowners were wealthier in the first place, which is what allowed them to have the funds to purchase their home. On the flip side, though, consider that most homeowners are entering into their ownership situation with a mortgage loan as debt. This debt, however, is an investment, unlike rent or personal loans that renters more often take on.

Home prices continue to rise faster than interest on a standard mortgage, meaning homeowners can sell for a profit after they’ve paid down a loan. Even before this happens, they’re contributing positively to a tax-advantaged equity fund, which renters have no access to at all.

For more on how you can get out of a renting cycle and become a first-time homebuyer, or to learn about any of our mortgage services, speak to the pros at Altius Mortgage today.