Tips To Keep In Mind Between Mortgage Approval and Mortgage Funding

In light of the current market 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, and that is pull 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:

1. Don’t buy a new car or trade-up to a more expensive lease.
2. 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, give me a call and I can let you know if this may jeopardize your approval.
3. Don’t change industries, decide to become self-employed or accept a contract position even if it is within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.
4. Don’t transfer large sums of money around 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.
5. Don’t forget to pay your bills, even ones that you are 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!
6. Don’t open new credit cards. Again, just wait until after your funding date.
7. Don’t accept a cash gift without properly documenting with me – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give me a call before you deposit it.
8. 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 me before doing any of the above just to make sure!

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca
Web: www.BrentIrving.ca

Web: MyMortgageBC.com

Proposed Changes for First Time Home Buyers

Home Buyers Plan: Starting January 28, 2009, first time Home buyers can withdraw up to $25,000 from a Registered Retirement Savings Plan (RRSP) to purchase or build a home with out incurring the tax. This limit has been increased from $20,000. For the purpose of the Home Buyers Plan, an individual is considered a first time home buyer if neither the individual or his/her spouse owned and lived in another home in the calendar year of the withdrawal or in any of the four preceding calendar years.

First Time Home Buyers Credit: A tax credit of $5000 has been introduced for first time home buyers that purchase a home after January 27, 2009. The credit for the taxation year will be calculated by reference of the lowest personal tax rate for the year the claim is made. A first time home buyer for the purpose of this credit is an individual that has neither owned or lived or his/her spouse has owned and lived in another home in the calendar year of the claim or in any of the four preceding calendar year.

If you would like to pre-approved to purchase your first house please don't hesitate to contact me at 604-764-6336. I'm a long term mortgage broker working with Dominion Lending Centres.

15th annual free seminar for first-time home buyers

15th annual free seminar for first-time home buyers

Vancouver-area young people are eager to purchase their first homes, but many need help to de-mystify the process. They have lots of questions. How can I be safe purchasing a condo before construction starts? What location is best? What type of home is best matched to my needs and financial resources? What are the mortgage options? What are the legal considerations? How do I benefit from builder licensing and mandatory home warranties?

These and other key questions will be answered by a panel of housing experts at the 14th Annual Seminar for First-time Home Buyers, presented by the Greater Vancouver Home Builders' Association (GVHBA) on Tuesday, March 24 from 7 p.m. to 9 p.m. in the Guildford Sheraton Hotel Ballroom, 15269 104 Avenue, Surrey.

Admission to the popular seminar is free thanks to sponsorships.

Speakers will be determined soon and GVHBA Chief Executive Officer Peter Simpson will be the seminar moderator.

"Our experts will help first-time buyers complete their homework by investigating all available options and issues before they take that crucial first step onto the property ladder,” said Simpson.

"More than 800 people attended last year’s seminar and, because real estate is still a hot topic, including the pre-construction buying process for condominiums, we expect a similar attendance this year. Doors open at 6 p.m., allowing attendees ample time to view displays of new homes, financial choices, warranties and other housing-related products and services," said Simpson.

Pre-registration is required. Call 604-588-5036 from 8:30 a.m. to 5 p.m. Monday to Friday. Registrations will also be taken by answering machine at the same phone number on weekends.

At MyMortgageBC.com we are experts in helping first time home buyers obtain low rate mortgages at no charge. Please contact us at 604-764-6336 for any questions you have about obtaining a low rate mortgage.