It’s not always enough to have a mortgage approved – there are lots of factors that could mean you don’t get the funds, advises Alisa Aragon

You have saved enough money for the down payment and you are excited to buy a property. You have spent considerable amount of time looking for the right home and your mortgage has been approved. However, there are certain things that can affect your mortgage approval, which is based on more than just having the down payment. Some of the things lenders also consider are your income, employment history, credit history, other properties and so on.

Most lenders request your credit score within 30 days of the approval – and they might even request a new one between the mortgage approval and funding date, especially when there is a long period between the two.

So how can you ensure nothing goes wrong in that time?

The following helpful tips explain what not to do between the time your mortgage is approved and when you receive the funds.

• Don’t buy a new car or trade up to a more expensive lease.
• Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, call your mortgage expertand they can let you know if this may jeopardize your approval.
• Don’t change industries, decide to become self-employed or accept a contract position –even if it’s within the same industry. Delay the start of your new job, self-employment or contract status if you can, until after the funding date of your mortgage. Any changes could definably jeopardize your mortgage approval.
• Don’t transfer large sums of money between bank accounts. Lenders get especially skittish about this one because it looks like you are borrowing money. Be ready to document cash transactions or money movements.
• Don’t delay payment of your bills, even ones that you are disputing. This can be a legitimate deal-breaker. If the lender pulls your credit bureau prior just to the closing and sees a collectionor a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute or even worse, put your approval at risk!
• Don’t open new credit cards. Again, just wait until after your funding date.
• Don’t accept a cash gift without properly documenting it – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give your Mortgage Expert a call before you deposit it.
• Don’t buy furniture on the “Pay nothing for XX years” plan until after you get mortgage funding. Even though you don’t have to pay now, it will still be reported on your credit score, and will become an issue – especially if your mortgage approval was tight on the debt service ratios to begin with.

Buying a home and getting approved for a mortgage is not meant to be a difficult process. It is important to do your due diligence and know as much as possible and make informed decisions on your path to homeownership. If you are in doubt, it’s always best to call your mortgage expert before making a move that could jeopardize your approval.

Alisa Aragon - Dominion Lending Centres Mountain View July 4, 2016