An accepted offer does not guarantee that your mortgage funds will be available on completion day.
Mortgage pre-approvals and commitments are based on the information available when the lender reviews the application. The lender may still need to confirm the property, income, employment, down payment, credit, and other conditions before releasing the money.
Changes that seem unrelated to the purchase can affect the amount you qualify for or delay the lender’s final review. Until the sale completes, keep your finances stable and speak with your mortgage professional before making a significant change.
Key Takeaways
- A mortgage pre-approval is not a guarantee of final funding.
- Employment, debt, credit, and available cash can be reviewed again.
- New loans or large purchases may reduce the amount you qualify for.
- Deposits and transfers should have a clear, documented source.
- Tell your mortgage professional immediately if your finances change.
1. Don’t Change Jobs or Quit Your Job
Lenders want to see reliable income. Quitting, changing employers, reducing your hours, becoming self-employed, or moving from a permanent position into probation can affect how your income is evaluated.A new job with a higher salary may still create complications if the lender requires a history of earnings, a completed probationary period, or updated employment documents. Commission, bonus, overtime, and self-employment income can require additional verification.
If a job change cannot wait, contact your mortgage professional before accepting the new position. They can explain what documents the lender may need and whether the change is likely to affect approval.
Do not hide an employment change. The lender may verify your employment again before funding the mortgage.
2. Don’t Buy a Vehicle (Unless You Want to Live In It!)
A new vehicle loan or lease creates a monthly obligation that can affect your debt-service ratios. This may reduce the amount you qualify to borrow, even if the vehicle payment feels affordable within your personal budget.The timing matters. A buyer who qualified close to the lender’s maximum may no longer qualify after adding a large monthly payment.
Wait until after the home purchase completes before financing or leasing a vehicle whenever possible. If replacing a vehicle is unavoidable, ask your mortgage professional to calculate the effect before signing anything.
The same concern can apply to recreational vehicles, boats, motorcycles, and financed equipment.
3. Don’t Miss Any Payments
Payment history is an important part of your credit profile. A missed credit-card, loan, line-of-credit, or cellphone payment could lower your credit score or create questions during the lender’s final review.Set reminders or automatic payments for every account while buying a home. Continue paying at least the required minimum, even if you are trying to preserve cash for closing.
Check your credit report early enough to correct errors before making an offer. A legitimate missed payment cannot always be removed, but identifying the issue in advance gives your mortgage professional time to consider the available options.
4. Don’t Drain Your Savings
The lender may expect you to have enough money for the down payment and closing costs. A sudden drop in your account balance could create a shortfall or require an explanation.In addition to the down payment, buyers may need funds for:
- Property Transfer Tax
- Legal or notary fees
- Inspection and appraisal costs
- Property-tax and utility adjustments
- Insurance
- Moving expenses
- Immediate repairs or purchases
If you are using money from an FHSA, RRSP, gift, investment account, or the sale of another property, confirm the required timing and documentation well in advance.
5. Don’t Hide Any Debts
Mortgage applications require accurate information about debts and financial obligations. This can include credit cards, student loans, vehicle loans, lines of credit, support payments, other mortgages, and debts you have co-signed.A lender may discover an undisclosed debt through the credit report, bank statements, or other documentation. This can delay the application, reduce the approved amount, or cause the lender to withdraw its commitment.
Deliberately providing false or incomplete information can also amount to mortgage fraud.
Tell your mortgage professional about every financial obligation at the beginning. It is easier to find a solution before an offer is accepted than while approaching the completion date.
6. Don’t Make Large Purchases Before Closing
Furniture, appliances, electronics, renovations, and travel can be tempting once you know where you are moving. Large purchases can reduce the cash available for closing or increase credit-card balances.Even a cash purchase may create a problem if it uses money the lender expected to remain available for the down payment and closing expenses.
Wait until the purchase has completed before buying expensive items for the new home. The furniture sale will probably still be there after you receive the keys.
If an urgent purchase cannot wait, confirm that it will not affect your financing.
7. Don’t Apply for New Credit
Applying for a credit card, personal loan, line of credit, or store-financing plan may result in a new credit inquiry. If approved, the new account or balance can change your credit profile and debt obligations.Promotional offers such as “no payments for 12 months” still involve credit. The lender may need to include the obligation when evaluating your application.
Avoid new credit applications between pre-approval and completion unless your mortgage professional confirms they are safe.
This also applies to increasing existing credit limits or accepting a new line of credit offered by your bank.
8. Don’t Make Large Deposits Without Talking to Your Lender
A large deposit is not automatically a problem. The lender may need proof showing where the money came from and whether it must be repaid.Common sources include:
- A gift from an immediate family member
- Sale of a vehicle or other asset
- Transfer from an investment account
- Employment bonus
- Inheritance
- Proceeds from selling another property
Speak with your mortgage professional before moving down-payment funds between accounts. They can tell you what paper trail the lender will require.
9. Don’t Change Bank Accounts
Opening or closing a bank account does not automatically cancel a mortgage approval. It can create additional work when the lender is reviewing statements and tracing the down payment.Moving money between several accounts can make the transaction harder to document. Closing an account too early may also make it difficult to retrieve the required statements later.
Keep the accounts connected to your mortgage application open until your mortgage professional confirms they are no longer needed. Save complete statements showing transfers between accounts.
If you need to change banks, let the lender know and keep a clear record of where every dollar went.
10. Don’t Co-Sign a Loan for Someone Else
Co-signing makes you legally responsible for another person’s debt. A lender may include that obligation when calculating how much you can borrow, even if the other borrower makes the payments.This can apply to vehicle loans, student lines of credit, personal loans, rental agreements, and other mortgages.
Some lenders may consider evidence that the other borrower has consistently made the payments from their own account. The treatment varies by lender and situation, so do not assume the debt will be excluded.
Wait until after your home purchase completes before co-signing whenever possible. If you already co-signed, disclose it at the beginning of the mortgage application.
What to Do if Your Financial Situation Changes
Early disclosure gives the lender time to request documents, recalculate the application, or consider another mortgage product. Waiting until the final days before completion can leave fewer options.
Do not assume that an accepted offer, pre-approval, or signed mortgage commitment means the money is guaranteed. Review all outstanding lender conditions and confirm when they must be satisfied.
Your Realtor, mortgage professional, and lawyer or notary each handle different parts of the purchase. Keep everyone informed when a change could affect your ability to complete.
Final Thoughts
The period between an accepted offer and completion is a good time to keep your finances boring. Continue paying bills, avoid new debt, and keep the money required for closing accessible.Most financing problems are easier to address when they are identified early. A quick conversation before making a major financial decision can prevent delays or the loss of mortgage approval.
If you are planning to buy in Pitt Meadows, Maple Ridge, the Tri-Cities, or elsewhere in Greater Vancouver, I can help you coordinate the real estate side of the purchase and connect you with a qualified mortgage professional.
Related Reading
- 5 First-Time Home Buyer Mistakes to Avoid: The financing, budgeting, and due-diligence mistakes that can make a first purchase more difficult.
- The Cost of Buying a Home: The deposits, inspections, legal fees, taxes, and other expenses buyers should prepare for.
- Deposits: Everything You Need to Know: How deposits work, when they are due, and what can happen if a buyer cannot complete.
- Does It Make Sense to “Marry the House, Date the Rate?”: The risks of buying based on the assumption that mortgage rates will fall.