Congratulations!  The offer you placed on the home you had your eye on has been accepted (no easy feat in early 2022)!  You were pre-approved before you placed the offer and have already selected the lender that you feel most comfortable working with throughout your process.

You have done everything right up until this point.  What’s next!

It is important to remember that although you have been pre-approved, and everything looks great with your mortgage file – the lender will complete updates to confirm any changes right up until closing date.

Here are the Top 5 DO’s and Don’t to get you to closing as smoothly as possible

1. Do provide your broker all updated pay stubs received between application and closing
2. Do provide updated bank statements for all accounts that will be used for funds to close
3. Do be ready to explain an out of the ordinary large deposits that show up on your bank statements
4. Do get your home inspection scheduled as soon as possible
5. Do choose your homeowners insurance policy as early in the process as soon as possible
   1. You will want to shop around to find the best homeowners insurance policy that suits your needs.  Keep in mind that your lender will want to review your homeowners insurance policy at a minimum of 10 business days before closing.  To avoid any closing delays, the earlier in the process that your homeowners insurnance is confirmed the better.

A home purchase is one of the biggest investments most people will ever make.  As with any large financial investment the list of Don’ts is bigger than the Do’s.  Here are the Top 5 to keep in mind once your mortgage is in process.

1. Don’t open any new credit accounts.
   • Got a great deal on a store card to purchase furniture for your home with no payments for 3 years!  It is best to wait until you close on your home and your mortgage process is complete.  If you are approved for a mortgage but your debt ratio is snuggled right up to the limit – a new credit account could change the equation.  If your debt ratio moves above the limit an approval could become a denial.
   • If your debt ratio is well within allowable guidelines opening a new credit account during your mortgage process may be ok.  However, if you do open a new account be prepared to document it.  The lender will need to see your balance, loan limit and monthly payment.  Often when a new credit card is opened it could take a few weeks for the creditor to send out your statement with the needed info.  This wait for documentation could cause delays in your closing date.  It is always best to avoid opening new credit during a mortgage process.  If you must open new credit, always check with your broker first.
2.  Don’t have your credit pulled for non mortgage related accounts.
   1. The best mortgage process is usually acomplished with as little documentation as possible.  Any credit pulls during your process will require an explanation and written letter.  If any new credit was opened from a recent pull it will need to be documented as listed above.
3.  Don’t change bank accounts or transfer large sums between accounts.
   1. It is best to have all the funds in one account 60 days before you sign a home purchase agreement.  There are some exceptions to this – such as if you are taking money from your 401k / retirement account or if you are receiving Gift Funds from a family member.
4. Don’t quit of change jobs.
   1. Quitting a job during a mortgage process is one of the quickest ways to go from approval to denial.  A job change can be ok, if you are remaining in a similar line of work with similar verifiable income.  It is always best to avoid a job change during a mortgage process.  If an employment change is unavoidable, ALWAYS speak with your broker first.
5. Don’t close any credit accounts.
   1. Closing a credit account can have a negative impact on your credit score.  Depending on the overall strength of your mortgage file a drop in score during your process could impact approval and/or rate pricing

A mortgage for a home purchase does not have to be a stressful ordeal.  If, before purchasing your home, you start with a strong pre-approval, work with a great broker and follow the above steps – you will have the keys to your new home in no time!