Tips to Keep in Mind When Applying for a Mortgage

I'm Applying for a Mortgage - What else should I know?

1. Don't have your credit pulled by another Broker or Lender

​The lender will often pull your credit again right before financing. If the lender sees that other brokers or lenders have pulled your credit the lender views this as credit-seeking and that can put your funding in jeopardy.

2. Don't Apply for New Credit

The lender calculates your debt based on the amount of credit you have. If you are applying for new credit, the obvious assumption is that you are planning on using it. Don’t get any new credit until the closing date is passed.

3. Don't Close Any Old Credit Accounts

Credit is not a bad thing….unless you are having a hard time managing it. Old credit shows a long history of being able to handle credit. Lenders like that.

4. Don't Move Your Money Around Without a Paper Trail

When you settle with the bank on the contract of the mortgage, the lender will require bank statements showing your saved money. They look at the history along with the balance. If there are any unusual deposits, you will need to explain where the money comes from. Be prepared to show a paper trail.

5. Don't Increase Your Debts

The lender always looks at your debt to income ratio. If you increase your debt, you can risk going over the maximum amount of debt compared to your income.

6. Don't Skip a Payment or Make a Late One

Credit is negatively affected by late payments and the lender will ask about them even if there is only one late payment. Schedule your monthly payments automatically to be withdrawn so that you never show a late payment on your credit bureau.

7. Don't Buy a Car

It’s amazing how many people buy a new car…. just before they go to buy a new house! Resist the urge. While we are at it don’t finance another house, couch, musical instrument or ANYTHING ELSE!!! Wait until AFTER closing.

8. Don't Change Jobs

Your financing will be based on secure employment, getting a new job (and usually being placed on probation in a new job setting) will disqualify you from financing. WAIT until after closing.

9. Don't Spend Your Savings

Make sure your savings remain the same. Right up until closing, the lender will want to see that your file is as it was when first applying for the mortgage.