This is Your Pre-approval Top Ten List made simple.

Summary

Secure Your Mortgage Pre-Approval: James Loewen's Top 10 Tips to Avoid Mistakes. Learn how to protect your pre-approval and ensure a smooth home buying process. From job changes to credit card usage, get expert advice on preserving your financial standing. Don't risk your dream home - be smarter, not harder.

Transcript

James Loewen:

Hey, guys, welcome back. So, you've got a mortgage pre-approval or maybe you've bought a house and you're about to close, these are the top 10 things that we find our clients either accidentally or incidentally do that might risk or jeopardize that full pre-approval. So grab your sweater, let's make your pre-approval better. I'm James Loewen. This is Smarter, Not Harder.

All right. Well, let's roll our sleeves up around here and get started in making sure you don't make any of these mistakes and jeopardize your new home.

Number one, don't change your jobs, become self-employed, or quit your job. If you are thinking of changing your job, let us know. There are ways and certain avenues where we can still maintain your pre-approval, okay? So just let us know or give us a call.

Number two, buying a new vehicle or leasing a new vehicle. We've qualified your pre-approval based on how much you earn and how much you owe. If you change what you owe, your preapproval approval is going to reflect a difference in that.

Number three, rack up your credit cards. Similar to number two, if you really increase the amount that you have owing on those and knowing that the lenders can also pull an updated credit bureau, that could jeopardize your pre-approval or approval.

Number four, spending money that you've got set aside for the purchase of your new home, i.e. down payment, land transfer, legal cost, all those things. If you need to change or want to reallocate uses of funds, just give us a call. There might be a way that we can do that for you.

Number five is omitting any liabilities or debts that maybe you know you have that maybe didn't show up on your credit bureau. If you just recently obtained a car loan or lease or any type of liability, that might take up to 30 days or even longer to report on your credit bureau. Just because it didn't report when we first pulled it up doesn't mean it's not going to report at a later date when we might have to pull an updated credit bureau. So if you are thinking or have, let us know.

Number six, buy furniture for your house. Don't count your chickens before the eggs have hatched. You don't even know what your house is going to look like, the shape, or size. Don't buy furniture. I know it's fun to shop but stop.

Number seven, pulling up any additional credit bureau inquiries. Pulling your credit's not going to hurt you a lot, but we want to make sure that we're in control of when, who, and how it's being pulled. So seeking credit from outside sources, seeking or going and starting an application with your bank can really jeopardize. You may inadvertently say something to them that we may have said differently in obtaining your preapproval. Our rule is when in doubt, don't show. Keep it a secret. Just come and talk to us. We don't want other people knowing or pulling up to credit bureaus. Let us be the ones to do that for you.

All right. Number eight. That one is making large cash deposits. If you find yourself with a suitcase full of cash, I'm going to include my bank account number here and home address, just drop it off and give it to me. I'll make sure to send you a nice picture of whatever I've purchased. Jokes aside, guys, we have encountered something called the Anti-Money Laundering Act. If you have large sums of money, tell us. We can address how and where and when to be best depositing and tracking those funds.

Number nine, don't change your bank accounts and not only bank accounts, that also includes RSPs, TFSAs, non-registered accounts, checking, savings, and onward. Similar to number eight, we need to track and source somewhere between 30 up to 120 days. If you change or move and close that bank account, we now have zero record or tracking of that. It becomes a really big nightmare. When in doubt, don't close it out.

And number ten, do not co-sign. Don't be a co-applicant, a guarantor, whatever co or whatever you want to call it onto there of a family, love member, or even people you don't like for that matter. Whenever you're co-signing or putting forth a guarantee, you are just as liable as that person. So if that loan is $1,000 a month, you now have $1,000 a month on your application. So if anyone asks you, "Hey, would you be so kind to co-sign?" Tell them to forget about it until you've closed on your mortgage loan.

Now, I know I said this is only 10, but it's time to get serious here. Guys, listen, number 11, the bonus tip, a little extra special secret sauce here. If ever you're getting advice or information from your dog walker or your hairdresser, your water provider, if you're using a Ouija board to speak to the spirits, don't, all right? Before you make some stupid change and act like a joker, reach out and call your mortgage broker.

Hey, guys, doing this video series has been a lot of fun. What I really appreciate is the feedback I'm getting from you, the suggestions on other questions, so please keep them coming, the comments, liking, sharing, all those types of things. It's been nothing but a pleasure. So keep letting us know and we'll do our best. There's no such thing as a stupid question and I'll do my best not to give a stupid answer. I'm James Loewen and this is Smarter, Not Harder.