Our clients are very important to us! We always suggest that you get a pre-approval of your mortgage before we start the house-hunting search. We want to make sure that you know the approval amount and how we can help you find a home within your budget.
You may think that once you have a pre-approval that you are home free to securing that perfect home. But sometimes you may be unaware of how securing a mortgage approval works. We want to make sure you get your perfect home. Here are some items you may not be aware that may sideline your mortgage approval process:
Applying for new credit
You may think this is ok to add more credit when you are buying a home but it can cause some havoc if your credit score takes a hit. This can cause problems including adjusting the interest rate higher on your mortgage.
Paying off all your debt
Paying off all your debt may seem like a good thing to do when you are getting a mortgage. This, in fact, can deplete some of your cash reserves. You are pre-approved on certain assets and if these change, you could be denied your mortgage.
Don’t switch jobs
Your lender wants to know what you do for a living. They look at the consistency of employment and any gaps in employment. If you switch jobs this might send out a red light to your lender.
Your credit score took a hit
Maybe you were scrambling around for your down payment and let a couple of bills lapse or you maxed out your credit card. Either way, your approval was on a certain credit score and if that is now lower, it can be a concern for your lender and for your approval.
Co-signing a loan
When you are trying to get approval from a lender you should not co-sign a loan. This is also considered a debt for you even if you are not making the payments.
Our Anne Winch Real Estate Team is always with you every step – from negotiating the purchase price through to the help you may need in the legal and monetary approvals in the purchase of a home.
We have a team of experts to help you with any decisions from the beginning of the purchase cycle to the end. We will help you with the negotiations of buying your home but we also have mortgage brokers and legal experts to help you finalize pre-approval up to the final legal requirements for the purchase of your home.
We want you to be able to go through the process without any glitches. Let us help you buy, sell or stage your next home in 2020. Do you have any questions, we would be happy to help?