4 Things That Guarantee Your Mortgage Doesnt Get Approved
You've finally taken the plunge- you've found the perfect home and you've decided to apply for a mortgage because you're ready to become a first time home buyer. Everything looks good because you've got good credit, your employment is stable, there's nothing standing in your way! Well, except for yourself! Your mortgage mentors of Dominion Lending Centres don't want to see your mortgage get turned down. Here are four things that can be the reason your mortgage doesn't get approved.
1. A New Vehicle for Your New Driveway
Vehicles are not a minor purchase and even if you think you can easily afford the monthly payment for a new one, the bank may not agree. This is one surefire way to get your mortgage application turned down. When you apply for a mortgage, you disclose all of your sources of income as well as your debts. If your application is reviewed before closing and there's a new debt payment that was not on the original application, your odds of getting and keeping your approval decrease substantially. Before purchasing a new vehicle, consult with your mortgage broker from Dominion Lending Centres- we can advise you if it will harm your approval or not.
2. Changes to Payments or Credit Accounts
Paying off a significant account or increasing your credit limit on a credit card is another no-no when you are waiting for a mortgage approval. While it may seem odd that paying off an account can work against you, the fact is it changes your position and causes a discrepancy in the information you originally provided, which may cause additional head aches when trying to get approved. For example, if you pay off a line of credit with your downpayment money to save a few months of interest until you close on your house, and then plan to re-use the line of credit when it comes time to hand in the downpayment, the bank will consider this a borrowed downpayment and will have to redo your application. This could be a deal breaker, so do not make any changes to your finances until you have the keys!
3. A New Job
Your employment is a major consideration on any mortgage approval and Dominion Lending Centres have seen too often where people accept a new position and have their mortgage approval denied. In some cases, it's because the new position has a portion of income that is based on bonus and commission. Even though the new position may pay extremely well, that type of income requires a two-year history to qualify for a mortgage approval. Similarly, if you decide to start a business, you will have to provide two years' worth of financial statements in order to qualify for a mortgage. Before changing jobs for any reason, please make sure to consult with us first or you risk your dream home by having your mortgage approval denied.
4. Becoming Careless with Payments
While waiting on your mortgage approval, it's more important than ever not to make even one late payment. Any downward change in your credit score or report can cause an instant denial and cancellation of your mortgage application. If you have to, set reminders for every payment you have during the month and make sure to pay them early or on time every time.
Dominion Lending Centres in Edmonton wants you to get the mortgage approval that will secure your first dream home. Contact us or apply online and let's get that mortgage approved!Request Mortgage Info