10 Commandments from Home Purchase to Possession Date

You've purchased your new home, the mortgage has been approved and you've got more than 30 days before you move in.  Here are some tips to avoid any problems with your mortgage funding on the possession date:

1) Don't change jobs, the way you are paid or quit your job.  Your employment may be reverified within 30 days of the possession date and if anything has changed, it could affect your mortgage approval and its ability to fund.

2) Don't co-sign a loan for anyone.  Co-signing any type of car, student or other loans will result in inquiries to your credit bureau and added financial obligations that you must be able to debt service for your mortgage to fund.

3) Don't buy a vehicle.  Applying for credit to purchase a vehicle will result in an inquiry to your credit report.  This could decrease your credit score and the amount you qualify for to take possession of your new home purchase.

4) Don't use your credit card or lines of credit excessively or make any late payments.  Using more than 70% of your credit card or line of credit limit decreases your credit score.  Any recent late payments will also significantly affect your score, regardless of the amount.

5) Don't spend the amount you have set aside for closing.  Having enough money for the down payment and closing costs is critical to getting your keys on the possession date.  It is also a good rule of thumb to have some extra reserves set aside for any unexpected costs that may occur after closing.

6) Don't omit debts or liabilities from your mortgage application.  Disclose all debts and liabilities early in the mortgage process.  Details are checked and double-checked so they will likely turn up at some point in the process and could jeopardize your mortgage approval when discovered.

7) Do not buy furniture, appliances or household items before closing.  Large purchases causing deductions to your bank account, inquiries to your credit report or additional debt could cause your closing to be delayed or denied.  Check with your mortgage professional before you commit to such purchases.

8) Don't apply for new credit.  Credit reports can be refreshed within 7 days of closing and new inquiries could cause more documentation to be required before your mortgage can fund.

9) Don't make large deposits.  Abnormal or large deposits into any of your bank accounts must have sources verified and may result in more documentation being required.

10) Don't pay off any collection or bad debt accounts prior to closing.  Any negative credit accounts that weren't addressed in the mortgage approval shouldn't be paid until after closing.  This will reduce your credit score immediately due to the date of last activity becoming recent.

Questions about mortgages?  Interested in a free, no obligation consultation to discuss your mortgage options?  Find a trusted and knowledgeable Manitoba Mortgage Broker at One Link Mortgage today!  We are here to help.