The Do's & Don'ts of Mortgage Pre-Approvals

Not sure how to make the pre-approval process run as smoothly as possible? Here are a few insider tips that can help!

Do not change your employment status or leave your current job! We will need to confirm your employment again before your purchase is complete.
Do not take on a new Car, Truck, Van, Motorcycle, Trailer, Boat, Plane (…you get the idea) loan! Wait until you have secured the property and even moved into your new home before making other large purchases or increasing your debt load.
Do not miss any bill payments! Banks hate it when there are recent late payments on credit cards or other debt maintenance.
Do not move your money around! This one is a kicker. Banks generally ask for a 90 day history of the account where your down-payment is sitting in at the time you write your offer. If your money has bounced between accounts, they will ask for a 90 day history on all the accounts the money has been in! Best to let it sit for now.
Do not co-sign any new debt! Helping out a family member or friend is great! (sometimes…) However, this can alter your own ability to borrow so best to wait until you have completely secured your own property first.

Do live like you’re already in your new home! If your anticipated mortgage payments or property expenses are going to be higher than your current mortgage, rent or living expenses, live as if you’re already making those payments. Keep the difference in a separate savings account that you can use those funds later on and apply them toward those unforeseen expenses, moving costs, or some new furniture!

Do keep your credit score up! Keep using your credit cards so that they continue to report every month. Ideally, keep them below 50% of their limits, and always pay them on time to keep an awesome (and favourable) credit score.

Do make sure that you have all your team members lined up to help facilitate your purchase! This includes: broker (hey, that’s us!!), realtor, home insurance agent, building inspector, lawyer or notary. If you need referrals from us for any of the above, just let us know we can connect you with some awesome people that we know and trust in the industry!

Do ask us questions! We don’t ever want there to be any big surprises when it comes time to put in your offer. If you have any questions or are unsure of any part of the buying or lending processes, just let us know!

Learn more by contacting our mortgage team, or apply now using our no-obligation application form to see where you stand.