You have your mortgage approval. Awesome. Exciting. But it’s not over until you have the cash!
Below is a list of things that can affect your mortgage approval. Remember, right up until Closing Day, a lender can cancel your mortgage approval if there are any material changes to your application or situation.
Income and Employment Changes
Any changes to your income or employment means you might not be able to qualify for the mortgage or prove your eligibility to pay it back, so:
- Avoid losing your job – do not resign before Closing
- Do not reduce your income level
- Do not change the status of your employment from full-time to part-time – or change to self employment
Down Payment and Closing Costs, remember…
- Do not spend your down payment on other things!
- Avoid surprises by making sure you have enough money for ALL Closing costs that we discuss
- That there can be property tax holdbacks and adjustments to be included in Closing costs
- If you are using your RRSP, it can take awhile to complete the withdrawal process so plan ahead
- Provide me with proof of your down payment as soon as possible
- Be prepared to explain large deposits that you show in your bank account to comply with Anti-Money Laundering Regulations
Things that might affect your credit rating…
A lender reserves the right to review your credit rating just before the Closing date of your mortgage. If there has been a material change in your credit, they could withdraw their mortgage approval. So:
- Don’t increase your debt unless we have talked about it
- Don’t buy/lease a big ticket item like a new vehicle without talking to me first!
- Don’t volunteer to guarantee or co-sign on a loan or mortgage for anyone else
- Don’t apply for new credit cards or loans
- Don’t open a “don’t pay for a year” account
- Don’t close any accounts before your Purchase
- Don’t stop paying your bills or current mortgage
- Make sure you provide me with all documentation as soon as you can
- Don’t wait until the last minute to arrange for property (fire) insurance
- Don’t just accept the life insurance package offered by the financial institution
- Don’t change your Closing date without telling me
This is not a list to make you nervous. It is a common-sense list
for those that might not realize what is common or makes sense.
Any questions, ask us first, and avoid ending up stressed and without a mortgage on your Closing Date.