What to Avoid After Applying for a Mortgage

Dated: January 31 2023

Views: 163

#1 Don’t Go Big…

So now you are approved for a mortgage and your credit looks great and you want a new car? You want to order your furniture from a store with a ‘do not pay until 2099’?

Just don’t do it! Avoid making large purchases as it can impact your cashflow and remember you’ll have additional financial obligations meaning your debt servicing will be higher and will be something for your lender to consider at the time prior to funding your mortgage. Wait until after you close on the property and take possession.

#2 The Airplane Oxygen Mask…

You’ve been approved for a mortgage and told family and friends. Now, they want to know if you can co-sign a car loan or a line of credit or borrow funds from you. Just like on the airplane when they give you the safety briefing and say put the mask on yourself before helping others…just wait until after you close on the property and take possession of it before offering to assist others. You may re-evaluate your finances then and make a better decision.

#3 Now it not the time…

Don’t apply for a new credit card, line of credit or some other form of financing until after you close on the property and take possession. Even the renewal of a car lease can affect you. A reduction in your credit score from a credit lending institution can affect your financing ability.

#4 Keep dating the same bank…

You can have a bank account with one big bank and get your mortgage with another bank, however, don’t open new bank accounts or move banks while you are in the process of buying a property. Wait until you have take ownership of your new property and then decide if you want to ‘stop dating the same bank’ and move onto a new one.

#5 Cancel culture…

Just keep your credits cards that you have now and that appear on your credit report history. There is no need to cancel credit cards at this time – wait until you close on your new property and take possession and then consider just how much credit access you need.

In closing, applying for a mortgage can be daunting and with average home prices up in value, inventory low and competition still in the marketplace you’ll want to be ready to take on the challenge.

If you have not already spoken with a trusted mortgage specialist and need a referral don’t hesitate to reach out. I work with several experienced mortgage specialists who can guide you through the process. Call/text me at 902-240-0768 or email me at dale@halifaxdartmouth.com

Good luck and hope you are able to get moved into your property soon!

Cheers, Dale

 

 

 

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Dale Cameron

RE/MAX NOVA is pleased to have multi-award winning agent Dale Cameron on the team who joined us from Century 21 Trident. With over 20 years in the industry, Dale has built a solid reputation for his s....

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What to Avoid After Applying for a Mortgage

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