7 Things NOT to Do After Your Mortgage is Approved
Getting approved for your mortgage is an exciting step, but your job isn’t done yet. Making the wrong moves before closing can lead to unexpected delays—or even put your mortgage at risk. Here are seven things to AVOID to ensure a smooth path to homeownership.
1. Do NOT Make Big Financial Changes
Now is not the time to switch jobs, take out new credit, or make large purchases like a car or furniture. Lenders may re-check your financial situation before closing, and any major changes could jeopardize your approval.
2. Do NOT Update Your Driver’s License Just Yet
It might be tempting to get your new address on your ID right away, but hold off. Your lawyer will require government-issued photo ID that matches the details on your mortgage paperwork. Updating it too soon could cause unnecessary complications and even delay your closing.
3. Do NOT Skip Shopping for Home Insurance
Home insurance is a requirement for mortgage funding, so don’t wait until the last minute. Failing to secure proper coverage could hold up the closing process. Compare policies early to ensure you get the best protection for your new home.
4. Do NOT Leave Town Without Notifying Your Lawyer
You’ll need to meet with your lawyer in person to finalize the legal details of your purchase. If you have travel plans close to your closing date, let your lawyer know well in advance to avoid unnecessary delays.
5. Do NOT Overlook Property Tax Arrangements
Property taxes can be tricky, and waiting until the last minute to figure them out can be costly. If you're enrolling in a tax installment program, do it before meeting with your lawyer. If your mortgage includes property taxes, be prepared to pay additional funds upfront depending on your closing date. Ignoring this step could mean unexpected expenses at the last minute.
6. Do NOT Forget to Update Your Address—But Time It Right
While you’ll need to update service providers, banks, and Canada Post, don’t rush the process. Overlapping addresses or missing key documents in the transition could cause unnecessary headaches. Make a list and tackle the updates methodically to ensure nothing gets lost in the shuffle.
7. Do NOT Assume Everything Is on Track—Confirm It
A few days before closing, reach out to your mortgage broker and lawyer to double-check that everything is proceeding as planned. Catching potential issues early can prevent last-minute surprises and ensure a stress-free move-in day.
By avoiding these common missteps, you’ll ensure a seamless transition to homeownership. Stay on top of the details, and you’ll be moving into your new home like a pro. Until next time my mortgage minions!