3 things to avoid once pre approved for a mortgage

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When looking to take the right steps to not only get pre approved, but to stay pre approved or approved for a mortgage in Ottawa, here are top three things to avoid.

 

3 things to avoid once pre approved for a mortgage

 

Late payments on debt:

Paying your debts late, whether $5 or $500, will have the same negative impact on your credit.  Also, more phone and internet companies’ bills are showing up on your credit.   So, it is important to pay them on time too. If your score decreases below a lender's allowable limit during your approved or pre approved stage, this can affect your application.

 

Starting a new job:

Changing or advancing employment can be a great thing in many cases. However, if you are moving from salary to hourly, bonus, contract, commission or self employment, it is important to know that most lenders will need to see two year's tenure in your new role for a mortgage. Especially if in an industry that is new to you. Also, if moving to a new job, it is important to know that lenders cannot use your income while on probation. With that, it's important to have your closing date for after your probationary period is over, if the income is needed in the application.

 

Taking on more debt:

Buying furniture/appliances for a new home, a car, camper or boat for example can be a great enjoyment.  However one should check with their Ottawa mortgage broker before taking on this new debt if financing the purchase. The debt payments can dramatically change your application.  Plus, it may come with new credit inquiries, which can lower your credit score. For every $100 in monthly debt payments you bring on, this lowers your approval amount by approximately $10,000. Therefore, a $400 a month car payment can reduce your home price approval amount by approximately $40,000.

Learn more: Equifax.ca
Learn more: How to build your credit score

 

Contact me today if you would like more information about the top three things to avoid once pre approved for a mortgage.

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

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