3 things NOT to do after your mortgage is approved

April 4, 2024 | Posted by: Chad & Patty Southwell

There are a lot of moving parts between an accepted offer and taking possession of a home.  The financing component requires credit and employment checks; account statement verification; and appraisal of the property.  This work generally takes place in the initial part of the process.  What some people are unaware of is the lender may revisit these already confirmed variables once again before closing, especially if the closing is a long one. Any significant changes can nullify your mortgage approval.

Once you sign your financing waiver, you are on the hook for the purchase. It's important to keep employment and finances status quo until you close.

Here are 3 things NOT to do once your offer is accepted, before you take possession:

1. Making a significant purchase on credit.  Increasing your debt load for a trip, a vacation property or rental, vehicle, or furnishings will impact your qualification. Even a free and clear debt that involves an additional monthly payment needs to be factored.  For example a cottage will have property tax debt.  

2. Changing jobs.  When opportunity knocks and a better job shows up while you are waiting to close, it is best to delay that until after closing.  To qualify your employment, you must be over your probation with at least a year of work experience.  If it is a raise in your company or a move upwards with the same employer that does not have a probation, that is fine of course.  Any significant career moves after you've been approved can derail your mortgage.

3. Taking on credit even with a zero balance.  Some lenders will qualify the mortgage using the full amount of the credit limit with a 3% repayment.  All credit even with a zero balance can upset the approval.  

Life happens and sometimes you can't stay stuck for the period of time between the offer and the closing date.  In that case, be fully transparent with any changes and work with your mortgage professional in advance to see if the change will negatively impact the approval.  A trusted mortgage agent will have solutions and the best guidance throughout your home ownership experience.  After closing, you are free to make changes but keep in mind you must be in a similar good position for the renewal or subsequent purchase.  

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