Stop it, don't do it. We mean it, don't do it!

Securing a mortgage can be stressful, we know. Our job is to help manage some of that stress for you. We can't take it all away but we can help navigate you in the right direction. Avoid these 5 common mistakes when applying for a mortgage.

1. Do not change jobs
   Lenders are looking for stability of income and employment. Changing jobs in the middle of or right before a mortgage application can have a negative effect on your eligibility to borrow money.

2. Do not take on any new debt
   One factor contributing to the amount of mortgage you will be able to borrower, depends on how much debt you already have. We pull your credit before sending in your application, the lender will also check your credit before they fund the mortgage. If you take on more debt in this time period, the lender could decide to not fund your mortgage.

3. Do not move your down payment around
   Where your down payment is coming from is VERY important. To satisfy anti-money laundering regulations put forth by the federal government, we must show 90 days banking history of where your down payment is coming from or has flowed through. If you have a down payment in multiple bank accounts, we need 90 days bank statements for each account. If you have recently moved money from a different account, we need 90-days bank statements for the account that money came from. Ask your broker BEFORE moving money around to avoid potentially holding up your deal.

4. Do not co-sign for someone else's mortgage or loan
   Co-signing for someone else’s mortgage or car loan will have a direct impact on your mortgage approval amount because that is now considered a liability payment for you. When you are co-signing, you are agreeing to take on that person’s debt, even if you are not the one making the payments. Doing this in the middle of securing a mortgage or getting a mortgage pre-qualification could negatively affect you.

5. Not budgeting for closing costs
   There are always extra fees associated with securing a mortgage that are not included in the mortgage balance. Some of these fees are: property transfer tax (BC), legal fees, title insurance, appraisal ect. We suggest having 1.5% of the purchase price, in addition to your down payment, for closing costs.