Four years ago I published this blog and I got a great response from it. I think it needs to be re-published as people keep making the same mistakes year after year.
Having processed hundreds and helped our team process literally thousands of transactions in my career, I’ve come across so many different situations and it goes almost without saying that everyone’s situation is unique. Even more so, it’s important to note that as many things that this guide will educate you about mortgage products and the ‘right’ things to do to successfully obtain mortgage financing, there are also a few pitfalls that I’m happy to be able to help you avoid as well. Here’s a list of a few of the things that I’ve experienced in my career in helping clients with their mortgage needs… I’d recommend avoiding these during the timeline between starting the loan application process until your purchase, building or refinance transaction is complete:
Do NOT change jobs!
A job change may result in your loan application being denied by the lender, particularly if your new position pays less, you decide to go back to school, you’re shifting between fields of work, if by starting you’re placed on probation or if your income structure changes (lower base pay with commissions, full commission, etc…). I’ve seen this happen a few times and the main disconnect here is that borrowers believe that their loan is approved early in the process, lender’s won’t call to re-verify your employment prior to funding the loan. The reality is that lenders can, likely will and this could cause problems for you. Have any questions or concerns as they relate to your scenario? I’m here to help!
Don’t make any large purchases until your mortgage has funded!
A major purchase that requires a withdrawal from your verified down payment (furniture, electronics, vacations) or increases your debt load (vacations, car purchase, financing furniture, business loans, etc…) can result in your not qualifying for your loan. A lender may check or re-verify funds in the days coming prior to funding and your transaction could fall apart at the last minute.
Avoid switching banks or moving your money to another institution!
After your lender has verified your funds at one or more institutions, the money should stay there until needed for the purchase. Fund transfers can take time and if your money has “disappeared”, your approval could be cancelled on you. ** One exception of this is when you’re using invested funds (stocks, mutual funds) are held at a separate institution than your day-to-day chequeing account. As long as we can prove that you’ve owned the funds for 90+ days, we meet the federal anti money laundering requirement and you can safely transfer the funds between institutions.
If you have any questions please contact me .