Mortgages – What Not To Do!
Everyone is an expert at telling you what-to-do when you’re purchasing a home or shopping for a mortgage.
Have you ever considered what-not-to-do might be equally important? Our role is to do everything we can to ensure a smooth closing.
Here’s a list of things that you might not realize could put your mortgage approval in jeopardy.
1. Don’t believe everything you hear (everyone you talk to thinks that they’re a mortgage expert)
2. Don’t ask too many people for their opinion, confusion will set in
3. Don’t apply for new credit cards or loans
4. Don’t open a “don’t-pay-for-a-year” account
5. Don’t close accounts that have zero balances
6. Don’t guarantee or co-sign a loan or mortgage for anyone else
7. Don’t stop paying your bills (including your current mortgage)
8. Don’t try to “fix” or improve your credit (without first discussing a strategy with your mortgage consultant)
9. Don’t spend part (or all) of your down payment on other things
10. Don’t let the value of your investments slip below the amount you need to “close the deal”
11. Don’t wait until the last minute to provide proof of your down payment
12. Don’t pack documents that may be required to verify income or down payment
13. Don’t make large deposits to your bank account (unless you’re prepared to provide an explanation with supporting documentation)
14. Don’t underestimate your closing costs (your lawyer, notary or mortgage consultant can help you with this)
15. Don’t forget to ask your lawyer or notary about property tax adjustments
16. Don’t quit your current job
17. Don’t neglect to disclose if you are still on probation at work
18. Don’t do anything to reduce your income
19. Don’t change the status of your employment from full-time to part-time
20. Don’t forget to tell your mortgage consultant if you are currently on maternity or parental leave (or if you will be in the very near future)
21. Don’t forget to disclose if you are currently on short-term or long-term disability
22. Don’t forget to disclose all information on your credit application
23. Don’t forget that a car lease payment is a monthly financial obligation (your mortgage consultant needs to know about)
24. Don’t forget to disclose any student loans (even if repayment hasn’t started yet)
25. Don’t neglect to disclose any credit problems or issues you may have experienced in the past
26. Don’t change your closing date (without telling your mortgage consultant)
27. Don’t neglect to satisfy all outstanding conditions of your mortgage approval
28. Don’t wait until the last minute to arrange for property (fire) insurance
29. Don’t just accept the life insurance package offered by the financial institution (your mortgage consultant can help you with this)
30. Don’t ignore telephone calls from your lawyer, notary, real estate representative or mortgage consultant
31. And most importantly… Don’t tell untruths to your mortgage consultant !