Do This...But Not That

A few tips to help you carry the (mortgage) ball over the goal line.

You want to buy a house. So that means there's a lot riding on your mortgage approval to get what you want, and save money while doing it.

Here at True North Mortgage, we expertly guide thousands of clients every year in buying their home. We definitely have some tips to pass on to help your pre-approval process work for (and not against) your home-buying goals.

Do this: 7 tips for your mortgage pre-approval

1. Get to know your budget. Your True North Mortgage broker will help you with your numbers, but understanding your own financial picture is always a sound idea.
2. Manage your debt and credit cards. Take stock of what you owe, and work to reduce your debt-to-income ratios.
3. Ready your down payment. Gather your numbers and know your down payment sources (you'll need to provide a 90-day history for related transactions).
4. Consider your rate type and mortgage term. We can help you decide what may work best for your lowest monthly payments.
5. Gather your info and docs. That way, you'll be ready to provide financial details when needed (we'll outline what you need along the way).
6. Stay in touch with your TNM broker. Once you're pre-approved, make sure to keep your broker in-the-know, especially if you need to leave town during the process or when your offer is accepted by a seller.
7. Read the fine print. Your broker will always take you through the details, but it's a good idea to read things over for yourself (or have a lawyer review them).

But not that: 7 tips of what not to do when getting pre-approved

1. Don't go beyond your pre-approval budget. Placing an offer on a higher-priced house runs the risk of being rejected by the lender (or pushing your budget over the top).
2. Hold off on any major purchases or loans. A lender wants to see commitment to your mortgage loan. Plus, you don't want to impact your debt ratios involved with your pre-approval.
3. Don't spend any of your down payment. Once your funds are established for your pre-approval, consider them off-limits for any other spending.
4. Don't move or transfer large sums between accounts. Anti-laundering laws are a big deal, so have a solid paper trail for your accounts and funds.
5. Don't apply for new credit. A new credit card, for example, may affect your credit rating, with not enough time to re-establish your standing.
6. Avoid any job changes. Steady and predictable is the way to go, to help the lender evaluate your income.
7. Pay bills on time throughout your process. Missing payments will impact the credit score used by the lender to approve your final mortgage.

Bring your pre-approval all the way home, while saving time and money.

When you first contact us to pre-qualify for a mortgage, we'll help you right up to walking through your own front door — all without a hitch.

You'll save thousands with a better rate AND the right mortgage product that fits your life. You'd be surprised how getting a flexible mortgage now can save you money later on (think pre-payment penalties) when you go to renew or refinance.

Your better mortgage is right here, with us — in your preferred language, anywhere you are in Canada.