After the Mortgage is Approved
After the Mortgage is Approved
So you have built good credit, saved the down payment, found your dream home and negotiated like a pro (with the help of your Realtor), finished the mortgage process and now you are all done! Or are you? There are a few more things to do between now and possession day so let’s take a look.
Do not make ANY changes to your financial picture – changing jobs, buying a car, taking a loan, or increasing your credit card debts. Any material changes to your financial picture are grounds for the mortgage lender to decline the application. Keep things status quo until after you have moved in.
Do NOT go and get a new driver’s license – It is very exciting to buy a new home and of course you want to move on with life, but you will be required to present a government-issued photo ID to the lawyer. I have seen mortgages not fund on time, for this reason, hold off on the new ID.
Look at home insurance – It is a legal requirement to have home insurance in place when you have a mortgage. This is a really great time to actually look around to make sure you are getting the best coverage possible.
Don’t leave town – A face-to-face meeting with a lawyer will be required to complete the process. If your work schedule requires you to be out of town or if you are planning a vacation then you need to let your lawyer know of this timeline.
Set up the property taxes – This one can bite new homeowners or their seasoned counterparts. If you choose to sign up on the city’s tax installment program you will need to do so prior to your meeting with the lawyer. If you choose to have the taxes included with the mortgage, then please be aware that depending on the time of year you purchase, you may be required to double up on the tax portion to ensure they have enough to pay at the end of the year. The lawyer will do a full accounting of the property taxes so if you have purchased from someone who pre-paid then you will be responsible to pay them back by bringing in extra funds to the lawyer. This can be mitigated by signing up with the tax installment plan. If you refinanced a home and the original mortgage included the taxes, it is highly likely that the balance was reduced by the tax account. You will have to have the entire years’ worth out of pocket. The onus is firmly on you to make sure the taxes are set up in a satisfactory manner so please confirm this.
Let everyone know you have moved – This can be done online with most companies or you can forward your mail with Canada Post. A hazard of being an adult is that it is our responsibility to make sure we still pay our bills on time even if they are delayed in getting to us.
Confirm everything is good to go – A quick call to your lawyer and your mortgage professional a few days before moving in will put your mind at ease, ensuring all is proceeding as planned.
There you have it. A few pointers on how to complete the process like a seasoned professional. If you are starting the process of buying your first home and you're needing guidance or help understanding the process, feel free to contact us with any other questions you may have; we would love to help make your dreams a reality!