Pre-Approval Don'ts

DON’T-switch employers or positions

Your pre-approval is based on your current employer, if you change those details, your pre-approval status may change.

DON’T-incur new credit card debt

Your pre-approval is based on your debt balances at the time of application, if you make any changes to those, your maximum purchase price could change. This includes “don’t pay for a year” scenarios.

DON’T-buy a car

You can’t live in your trunk, so don’t buy a new car until you have taken possession of your new house. The car payment will reduce your maximum borrowing power.

DON’T-trust a seller’s opinion on the condition of the property or any recent renovations done

Always confirm the details the seller has told you by obtaining a professional inspection.

DON’T-overlook a property because it needs a little TLC

Some lenders offer an innovative product called a Purchase + Improvements mortgage. This allows you to include the cost of the improvements in your total mortgage amount.

DON’T- make any large deposits into your account without consulting your mortgage professional first

The lender will want to confirm any large deposits into your account that hold the down-payment funds. This is to satisfy the Anti-Money Laundering Law.

Pre-Approval Do's

DO-pay down credit balances

Reducing your debt level is never a bad idea.

DO-use an experienced Realtor; or lawyer in the event of a private sale

You consult a doctor about your health, you consult a mechanic about your car, you should consult a real estate professional about your home purchase.

DO-put a financing condition on the Offer to Purchase

A pre-approval is an approval based on you the borrower and your current financial profile. The lender and insurance company (if applicable) still need to approve the property, specifically the value and condition of it.

DO-start saving up your closing costs

The lender will want to confirm you have cash on hand to cover your closing costs like lawyer fees, property tax adjustments, title insurance etc.

DO-talk to your mortgage professional before making any changes to your financial profile.

We need to know in the event it may change your pre-approval status.

DO-know your payout penalties

Ensure you are aware of the costs involved if you break your term early.

DO- start getting your supporting documents together

This will make the process go faster when you find a property.