If you have been approved or pre approve for a mortgage ensure you do not make changes that could jeopardise your mortgage approval.  If there are changes it can change your approval to a decline which can be a huge disappointment and sometimes have financial repercussions.   Nothing is final until the deal is actually closed and title and mortgage has been registered.

Here are your  Top 10 Awareness Tips:

1. Stay with your employer/job
   Lenders look for consistency and stability in employment to demonstrate you can make your mortgage payments.  If you are self employed, lenders typically are looking for a two year history of your self employed income.
2. Pay all of your credit obligations
   Your credit bureau, which will be pulled for all mortgage applications, will show how responsible your are with credit.  Making timely payments and not exceeding your limits are a critical part of that score and your credit story.
3. Do not apply for any new loans
   If for example you buy and finance a new car before your closing date, your new payment will be factored into the application and so reduce the amount you were qualified for.
4. Down Payment money requires a 90 day history
   Lenders require a 90 day history of all down payment money being used to purchase a property.  Any irregular deposits will need to be verified with a paper trail.  If that money came from another account, then you will need to show where it came from with a 90 days history.  If you sold any large items and deposited the funds, ensure you keep a record of this such as a bill of sale.  By setting up a separate account where you put your money for your down payment and start creating that history makes it easier to verify your down payment when the time comes to verify your down payment funds.
5. Get a Pre Approval
   Take the time to speak with your mortgage broker about your plans for purchasing a new home and let them review your options with you.  It is good to review your income, credit and the type of property you are planning to buy before you go out shopping.
6. Have the “Condition of Financing” put in your purchase offer
   A condition of financing gives you time to ensure you are approved. Not only does it ensure that you have covered all your basis on income and credit, it also protects you in the event of a disconnect with the price.  It may be that the price you offered is much higher then the lender will agree it is worth and if that is the case you will have to come up with the difference.  This is common in bidding wars and it does happen that people lose their deposit and financing as they do not have the money for the difference when they have a firm offer.
7. Did you co-sign for someone else’s loan or mortgage?
   As a co-signor you are responsible for the payments even if you are not making them.  These payments will be included in your mortgage application and in turn will reduce the amount that you qualify for.  If you have co signed for someone, see if they are able to now qualify on their own and have yourself removed as co signor.
8. Buying a home with a partner?
   Have you discussed and been open with your finances?  If there is unexpected financial history such as poor credit, a bankruptcy, inconsistent income, this can all have an affect on what you will qualify for.  Sit down, have the conversation and take time for a pre approval with a mortgage broker before you go out house shopping.
9. Furnishing your new home
   If you decide to purchase furniture on credit before your closing date, this will reduce the amount of mortgage you have qualified for as it will now be included as a monthly payment that you will make.
10. Be Honest
    When applying for a mortgage, your broker will ask you a variety of questions and paperwork.  Be open and honest with them so that they have the correct information to send to a lender.  There may have been some tough years in your past and it is much easier for your mortgage broker to know this before hand to ensure your application goes to appropriate lender that will review your file instead of being surprised with a decline.

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