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3 Mistakes to Avoid After Mortgage Approval

Getting a mortgage approval can be a very exciting time as you take the final steps towards owning your new home.

What some don’t realize is that the final approval that they’ve received is still conditional.

Yes, that’s correct, conditional.

Before you start to panic, because you’ve already removed financing conditions, let’s go over what these conditions are.

The condition to your approval, is that there are NO MATERIAL CHANGES to your mortgage application.

To give you an idea of what it means by “Material Changes” here are 3 examples of Mistakes to Avoid after getting a Mortgage Approval.

1. Changing Employment

Your approval was based on your current employment situation with your specific employer and specific income. If that changes, the condition that you have already satisfied with the lender will would no longer be credible.

If you are planning on making any kind of employment changes in the future, be sure to do it after you’ve received the keys to your home.


2. Getting More Credit

Some people get so excited to finally realize their home buying dreams that they celebrate buy making large purchases, such as a car.

DO NOT DO SO, unless in cash…and not touching your down payment and closing costs.

Your approval was based on your current debt situation with your income supporting your mortgage AND other debts.

Some lenders will pull a new credit bureau just before funding to ensure there are no changes credit wise. If all of a sudden there’s an $800/month vehicle payment that needs to be accounted for, that could jeopardize getting your mortgage funded.

That is NOT stress that you want in the 11th hour just before closing day.

Again, wait until after you’ve taken possession of your new home before you decide to get more credit.


3. Spending your Downpayment Money

Seems like common sense, however there have been cases where this has happened.

Someone may have celebrated getting their new home buy buying a car, a lot of new furniture, or what have you. While they knew getting more credit was not a wise decision, they may have thought that they could re-save the funds for the down payment and have enough in time for closing.

This is a dangerous situation to put yourself in as this could not only delay closing, but open yourself up to liability.

Don’t leave future you to scramble at the last minute trying to get funds together by satisfying the present and short-sighted you and dipping into the down payment and closing costs funds.

That money is spoken for. Treat it as such.


This has been some more #RealAdviceforRealLife brought to you by Rose Blankenagel.

Contact Rose if you have any questions about your mortgage.

-Real Mortgage Advice