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 approval or pre approval 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. 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.
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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.