Here are 7 important tips to remember while you wait for the keys to your new home or for your mortgage refinance to fund:
Employment: Your mortgage was approved based on your current employment details, now is not the time to accept a new position in a new company and resign. This is a significant material change to your application and the lender may cancel your approval.
Existing Mortgage Payments/Bridge Loan: If you have purchased a house and require a bridge loan, ensure that you continue making your existing mortgage payments until it has been discharged. A bridge loan will cover your down payment and closings costs however, you will be responsible for your mortgage payments.
New Car/Large Purchases: Any changes to your monthly debt payments, for example, a new car lease or loan will affect your application. Before making any large purchases like this contact us to first review how this will impact your existing approval. Keep in mind, a re-approval will be required which may change the terms and rate of your mortgage.
Maintain Existing Payments: It is very important to maintain all existing credit payments on time, every time to protect your credit rating. Any changes to your credit score and history will affect your existing approval ie: if an existing credit dispute went into collections. Don’t let that happen.
Co-Signed Loans: When you co-sign a loan for someone, this payment will be added to your application as a liability therefore, this will affect your application. The lender will need to re-approve you which means your existing approval will be cancelled and you will be subject to new terms and rates.
Don’t Close Any Credit Accounts: If you pay off a credit card, make sure you do not close it. Believe it or not, it helps when you keep an account open that you have had for many years, even if there is a zero balance and you don’t plan on using it. The length of time that you have credit, as well as the usage and repayment history, is very important as closing an account like this can have a negative impact on your credit score.
Large Deposits: Keep in mind, any large deposits made to your account before closing may require back-up documentation to verify the source of the deposit. If a lender requires a final bank statement be prepared for additional paperwork. We are help to help and guide you every step of the way.
Please do not hesitate to reach out to us with any questions and before any changes occur, reach out to us. Remember, lenders can always request additional supporting documents at any time, so until you have the keys or money in the bank, we want to ensure that you are fully informed and prepared.
Advice and Service you can trust.