What You Need to Know BEFORE Mortgage Your Property

There are some things to remember and keep in mind when you are purchasing a property or waiting for your mortgage to fund.  It is very important that you consider all of the following to ensure that there aren’t any preventable issues that arise.  You will find that everyone is an expert at telling you what-to-do when you purchase a home or shop for a mortgage.  I also think it is just as important to let you know what you shouldn’t do.  As your professional mortgage agent, I will do everything I can to ensure a smooth closing for you and your family.  Here’s a list of things that you might not realize could impact your mortgage approval – remember, right up until closing day, the lender has the right to cancel your mortgage approval if there are any material changes to your application or situation…. Firstly…. - Please don’t tell untruths to a mortgage brocker, it won’t help you get a mortgage! -  Please do not forget to tell  a mortgage brocker everything on your application including any other real estate that you currently own Income and Employment Changes Any change to your income or employment, means you might not be able to qualify for the mortgage or prove your ability to repay it back so…. - Avoid losing your job - do not resign - If you are on probation with your employer, let me know -  Do not reduce your income level -  Do not change the status of your employment from full-time to part-time -  If you are currently on maternity or paternity leave, or think you will be shortly, let  a mortgage brocker know -  Don’t forget to disclose if you are currently on short-term or long-term disability -  If you receive other income such as Canadian Child Tax Credit, and it’s going to stop soon, let mortgage broker know Down Payment and Closing Costs, remember.. -  Do not spend your down payment on other things! -  Avoid surprises, by making sure you have enough money for ALL closing costs that we discuss -  That there are property tax holdbacks and adjustments to be included in closing costs -  Try not to let your investments slip to a lower value -  If you are using your RRSP, it can take a while to complete the withdrawal process so plan ahead -  Provide mortgage broker with proof of your down payment as soon as possible -  Try not to pack documents that may be required to verify your down payment -  Be prepared to explain large deposits that you show in your bank account to comply with Money Laundering Regulations Things that might affect your Credit Rating…. A lender reserves the right to review your credit rating just before the closing date of your mortgage - if there have been any material changes in your rating, they could withdraw their mortgage approval, avoid this happening by… - Not increasing your debt load unless we have talked about it -  Not buying big ticket items like a new vehicle without talking to  a mortgage brocker first! -  Not volunteering to guarantee or co-sign on a loan or mortgage for anyone else -  Not applying for new credit cards or loans -  Not opening a “don’t-pay-for-a-year” account -  Not closing any accounts unless I advise you to -  Not stopping to pay your bills including your current mortgage -  Trying to fix your credit rating unless we have discussed it -  Remembering that a car lease payment is also an obligation that I need to know about -  Telling mortgage broker about any student loans you have -  Telling mortgage broker about any credit problems or issues you have had in the past And finally… -  If your closing dates are not on the same day, you might need bridge financing! -  Don’t change your closing date without telling me -  Make sure you provide mortgage broker with all the documentation I request at your earliest convenience -  Don’t wait until the last minute to arrange for property (fire) insurance. -  Don’t just accept the life insurance package offered by the financial institution -  Don’t ignore telephone calls from your lawyer, realtor, or mortgage broker! Shopping Around.. Everyone will be excited about your new home purchase, but please don’t believe everything you hear.  Everyone you talk to might think they are a mortgage expert.  Just remember, that if you ask too many people their opinion, confusion might well set in.  If you feel the need to shop around for another option, remember that too many applications to other lenders can impact your credit rating negatively – talk to mortgage broker so we can discuss this.