"5 Tips to a Smooth Mortgage Closing"
During the mortgage application process, it’s vital that you keep the following points in mind as you navigate through the various milestones with your broker.
Avoid pursuing any new commitments on credit, including:
Leases (equipment, auto)
Financing (furniture, appliances, auto)
Credit Card Applications
Personal Loans
Secured or Unsecured Lines of Credit
Do not co-sign any type of loan or credit related product on behalf of a third party. This includes co-signing any residential lease agreement in the capacity of guarantor.
Avoid reducing the balances in any accounts related to your downpayment.
If deposits above $3,000 are made in any account related to your downpayment, ensure these are legitimate, traceable sources such as payroll, gifted funds or transfers from a financial institution holding funds allocated for that purpose.
Avoid any employment status change during the mortgage application process. Such might include changing employers, changing status from full-time to part time or contractual.
These precautions are necessary to avoid negatively impacting your mortgage qualifying profile. Lenders reserve the right to revoke a mortgage commitment, right up until the closing day if something material is discovered that wasn’t previously disclosed.
