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DOMINION LENDING CENTRES OUR HOUSE WINTER 2018 45 ISTOCK Don't change employers or jobs. Any career changes can aect whether you qualify for a mortgage. Banks like to see a long tenure with your employer as it shows stability. When applying for a mortgage, it is not the time to become self-employed! Don't apply for any other loans. This will drastically aect how much you qualify for and also jeopardize your credit rating. Save the new car shopping until after your mortgage comes through. Don't decide to furnish your new home or make renovations on credit before the completion date. This, as well, will aect how much you qualify for. Even if you are already approved for a mortgage, a bank or mortgage insurance company can, and in many cases will, run a new credit report before completion to confirm that your financial status and debts have not changed. Do not go over limit or miss any repayments on your credit cards or lines of credit. This will aect your credit score, and the bank will be concerned with your ability to be responsible with credit. Showing responsibility with credit and repayment is critical for a mortgage approval. Don't deposit "mattress" money into your bank account. Banks require a three-month history of all down payments being used when purchasing a property. Any deposits outside of your employment or pension income will need to be verified with a paper trail. If you sell a vehicle, keep a bill of sale. If you receive an income tax credit, you will be expected to provide the proof. Any unexplained deposits into your bank account will be questioned. 1 2 4 3 Don't co-sign for someone else's loan. Although you may want to do someone else a favour, this debt will be 100 per cent your responsibility when you go to apply for a mortgage. Even as a co-signor you are just as a responsible for the loan, and since it shows up on your credit report, it is a liability on your application, and therefore lowers your qualifying amount. Don't try to beef up your application. Tell it how it is! Be honest on your mortgage application. Your mortgage broker is trying to assist you, so it is critical the information is accurate. Income details, properties owned, debts, assets and your financial past. If you have been through a foreclosure, bankruptcy or consumer proposal, disclose this info right away. Don't close out existing credit cards. Although this sounds like something a bank would favour—an application with less debt available to use—credit scores actually increase the longer a card is open and in good standing. If you lower the level of your available credit, your debt-to-credit ratio could increase and lower the credit score. Having the unused available credit, and cards open for a long duration with a good history of repayment, is good. Don't marry someone with poor credit (or at least be prepared for the consequences that may come from it). So you're getting hitched. Have you had the financial talk yet? Your partner's credit can aect your ability to get approved for a mortgage. If there are unexpected financial issues with your partner's credit history, make sure to have a discussion with your mortgage broker before you start shopping for a new home. Don't forget to get pre-approved! With all the changes in mortgage qualifications, assuming you will be approved is a huge mistake. There could also be unknown changes to your credit report, mortgage product or rate changes, all of which influence the amount you qualify for. Thinking a pre-approval from several months ago is valid now would also be a mistake. Most banks consider pre-approval to be valid for four months. Be sure to communicate with your Dominion Lending Centres mortgage professional if you need an extension on a pre-approval. 6 8 9 10 7 5 H ave you been approved for a mortgage and are waiting for the completion date to come? Well, it is not smooth sailing until after the solicitor has registered the new mortgage. Be sure to avoid these 10 mistakes or you risk having your approval status reversed.

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