Mortgage Corner: Tips to ponder between mortgage approval and funding

Web Lead

Dean Bala is a mortgage broker and Realtor working out of the Creston Valley Realty office in Creston. For more information

In light of the new market realities and tightening of credit underwriting standards by both lenders and mortgage default insurers as of late, keep in mind that now — more than ever — it’s important to be careful what you do between the time your mortgage is approved and when it funds.

A few mortgage lenders and insurers have been doing something lately that they have not done in a long time — pulling new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

•Don’t buy a new car or trade up to a more expensive lease.

•Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, call your mortgage professional and they can let you know if this may jeopardize your approval.

•Don’t change industries, decide to become self-employed or accept a contract position even if it’s within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.

•Don’t transfer large sums of money between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.

•Don’t forget to pay your bills, even ones that you’re disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!

•Don’t open new credit cards. Again, just wait until after your funding date.

•Don’t accept a cash gift without properly documenting it, even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give your mortgage professional a call before you deposit it.

•Don’t buy furniture on the “do not pay for XX years” plan until after funding.  Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue — especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to your mortgage professional before doing any of the above just to make sure!

Dean Bala is a mortgage broker and Realtor working out of the Creston Valley Realty office in Creston. For more information, he can be reached at 250 402-3903 or dean_bala@yahoo.com.

Just Posted

BC BUDGET: New spaces a step to universal child care

Fees reduced for licensed daycare operators

BC BUDGET: NDP cracks down on speculators, hidden ownership

Foreign buyers’ tax extended to Fraser Valley, Okanagan, Vancouver Island

BC BUDGET: Payroll tax replaces medical premiums

Health spending to increase $1.5 billion for drugs, primary care teams

CEC closure seems final

SD. 8 administrators and trustees offered no hope that the Creston Education Centre could remain open after June.

Radium man seeks Conservative Party federal nomination

Radium lawyer and businessman Dale Shudra has become the fourth candidate to… Continue reading

VIDEO: Top 10 B.C. budget highlights

The NDP is focusing on childcare, affordable housing and speeding up the elimination of MSP premiums

Video: B.C. firefighters featured in quirky video

Oliver Fire Department posts video about their B.C. volunteer firefighter spring training seminar

OLYMPIC ROUNDUP: Two more medals push Canada into second place

A gold in ski cross and a bronze in bobsleigh as men’s hockey advances to the semis

Trudeau reiterates denial of Sikh separatists in cabinet, condemns extremism

“We will always stand against violent extremism, but we understand that diversity of views is one of the great strengths of Canada.”

Canada wins gold in men’s ski cross

Leman earns redemption with ski cross gold; Homan out early

Trump says more must be done to protect children

In a tweet Tuesday night, Trump indicated he wants to strengthen the background check system, but offered no specifics.

Evangelist Billy Graham has died at 99

Graham died Wednesday morning at his home in Montreat, North Carolina.

Canadians capture bronze in women’s bobsled event

Canadians Humphries, George take bronze in women’s bobsled event at Olympics

Most Read