You have bought a property, your financing has been approved and you now have a month before you close on your purchase! Congratulations!    

While most of the hard work may be done, you are not out of the woods just yet. Your mortgage broker may have found you the perfect mortgage, but there are many ways you can sabotage your mortgage approval, even after you have been approved.

If you don’t want to kill your mortgage match made in heaven, avoid these common pitfalls:

1. Take on new debt.
You’re excited about your new home and you have taken on a new mortgage that’s lower than what you initially thought.  You think you can afford that new car after all.   WAIT….don’t take on new debt before your mortgage closes.  A new car loan payment can adversely affect your approval.   Talk to your mortgage broker first before taking on a new loan.

2. Take a new job or quit your old one. 
Your mortgage was approved based on the income you provided to your broker.  If your income situation changes before closing, the lender has the right to cancel your application if they feel the new job does not support the income situation they require.

 3. Leave town. 
The two weeks prior to your closing date are crucial for your solicitor and they will be contacting you for further information.  Generally, the solicitor will not have your final payment figure until a couple days before closing, so being available and flexible at that time will ensure the closing process goes smoothly.

 4. Change your purchase contract without consulting your mortgage broker, especially the dates! 
The broker has advised the lender of your closing date and your file will be processed accordingly. If you want to make any changes to your dates, you must speak to your broker first.  Same goes with changing the price or any other condition that can affect your mortgage approval. Bottom line: talk to your broker before making any changes.

 5. Stop paying your existing mortgage, if you have one, or any other credit cards/loans, etc.
Let’s say you have arranged a refinance/consolidation for your existing mortgage and/or other debt.   This does not mean you stop paying your existing debt.  Stopping these payments can mean a huge drop in your credit score, which you don’t want to happen before you close on your new mortgage.  So keep paying your bills, mortgage, etc, right up until your closing date.

 6. Spend your down payment or closing cost money! 
Remember, you will need to come up with your closing costs and any other down payment that is still owed.  So even though that trip looks tempting, don’t spend your funds that you have put aside for closing.  Your mortgage broker can solve most financial issues but they can’t print money!

Bottom Line: When in doubt, ask your mortgage broker.

Call me today to find out how I can get the best mortgage for you!