Keeping the Mortgage Approval Valid

A mortgage approval is only as solid as your finances stay between the letter and closing day; here is what can undo it.

New job? Tax payments? Cell Phones? Credit cards? What do these items all have in common?

They can affect your mortgage pre-approval and final approval!

The simple way to think during the mortgage process is that anything that is financial in any way can affect your approval. It can be frustrating, overwhelming, annoying, and more … but it’s the reality.

Four things that can undo an approval

1. Job Security – Lenders like clients who have job security. They have been at their workplace for a number of years, they have appear to have security there and the company is solid. Changing your job during the mortgage process can create a sense of insecurity in the eyes of the lender.
2. Tax Payments – You need to have your account with CRA current. You cannot have any outstanding income tax returns – all must be processed and payments up to date.
3. Cell Phones – We rely on our mobile devices daily and yet when the bill comes, we often don’t pay it on time. Did you know that your cell phone company reports to the credit bureau? So that delayed payment will show up on your credit report.
4. Credit Cards – We’ve said it again and again, you cannot miss any payments and you must be making at least the minimum payments. The best scenario is that your cards are paid off or have minimal amounts on them.

Bottomline, lenders like security. They like to know the client is going to make the mortgage payments. Just like you want your paycheque from your employer, the lender wants their payments. The best rates and terms come from a solid, secure financial status.  Let’s review your financial status and see where we can improve before you need a mortgage or a mortgage renewal.

Read:

I’m Pre-Approved What’s the Rush

Would You Believe That Some Properties Just May Not Qualify for the Mortgage

A simple rule for keeping the mortgage approval valid

If a decision changes your income, your debts, your credit or your down payment, tell your broker before you act, not after. The lender re-verifies everything before funding, and a mortgage approval that was solid at application can be withdrawn on the day of closing. If you are unsure whether something counts, it counts. The Financial Consumer Agency of Canada explains what lenders may verify, and we are happy to check a specific situation before you commit.

Talk to us about mortgage approval

Every file is different, and a ten-minute conversation usually answers more than an hour of reading. Book a call with Lisa or Kelly, or phone 289-723-2126, and we will walk through your numbers.