These Absolute Do Nots while applying for a mortgage AND up until closing are so important that any one of them can easily bring a mortgage approval or closing to a screeching halt.
The 5 Absolute DO NOTs while applying for a mortgage are:
- DON’T go out and buy a new car, furniture or ANY other large purchase. If you obtain any new debt (lease or bank loan) while your loan is in process AND until you get the keys to your new condo or house, you will be asked to document any new payments and those payments will be added into your mortgage qualification calculations. This new payment could put you over the edge and you may no longer qualify for the mortgage you want
- DON’T stop making payments on your monthly bills such as credit cards, auto loan or lease payments, etc. Often mortgage lenders will rerun your credit just before closing and any recent late payments (or new debts) could not only drop your credit score, but, also make you ineligible for financing as some mortgage lenders have minimum credit score requirements
- DON’T apply for any new credit cards or any other loans while you have a mortgage application in process. Not only could this lower your credit score, but also as mentioned above, obtaining any new debt could result in you no longer qualifying for the mortgage
- DON’T make any large bank deposits or transfers that you can’t document and explain. I repeat DO NOT make any large deposits or transfers you can’t document. Any large deposit or transfer may require additional documentation and could delay your closing
- DON’T quit your job, even if it’s for a better one, during the home buying process. A change in jobs will almost always require you to be in a 90-day probationary period by that new employer. Mortgage lenders will not advance funds if you’re still in that probationary time.
Keep Up To Date With Toronto's Real Estate Market
Every month we communicate with our readers to give them accurate insights and statistics about what's happening in the Toronto and GTA real estate markets.
Subscribe to our free monthly FYI Newsletter HERE.
Here are 5 proven ways to move safely and smartly towards your real estate buying goal...
- Download a free copy of my Ultimate Home Buyer’s Guide book
- Get a custom listings search set up for you and receive targeted listings daily
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed. Just leave some search criteria here
- Set up a step-by-step plan with the best ways to get to your home buying goal
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.
To arrange your no-obligation Starbucks Strategy Session, click here.
- Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
- Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Don’t make the same mistake. Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.