Rural financing can be difficult to navigate which is why it is so important to have a professional on your side.  With 20 years of rural lending, I have a vast amount of experience to help you with the process and to know your options available.

Rural financing refers to the funding of agricultural or (other rural-related projects) in a rural area. When considering building or buying a home on raw land (raw land = land that has not been developed, subdivided, or improved in any way ie: in its natural state, without any infrastructure or buildings on it) or running a hobby farm, it is important to take into account all of the factors. Let’s take a closer look at a few.

Building on Raw Land

Buying a parcel of land and building your dream home is an exciting venture – but here are some key points to consider:

• Higher down payment (25 – 50%)

• Higher interest rates

• Zoning laws and building codes

• Access to utilities (water, electricity, sewage)

• Soil quality and topography

• Environmental factors (flood zones, endangered species, etc.)

• Permits and fees, transportation access

• Future resale value.

Rural financing on raw land typically involves obtaining a loan from a specialized lender or government agency that provides financing for rural properties. The loan terms may vary depending on factors such as the size of the property, intended use, and creditworthiness of the borrower so it’s important to do your research thoroughly and consult with professionals before making any decisions.

Owning the Land

If you already own your land and are planning to build yourself, there are a number of ways to start the process.

Self-Build:  pull out your hammer and nails! This is a build done entirely by you (or the contractors you hire and manage solely on your own). You need to acquire a self-build draw mortgage – not a common mortgage, which means finding a lender might be tricky.

Builder-Draw: here you hire the builder! It’s easier to find a lender for this type of mortgage but some restrictions are in place. Because a draw mortgage is advanced in stages that align with the build, there is a greater risk to the lender, therefore less flexibility on interest rates. It depends on the lender so please research these thoroughly too.

Completion: the most common type of mortgage for building on city lots but not as common in rural. In some cases, if you’re subdividing acreages you’ll have an easier time with this type of mortgage.

Agricultural 

Purchasing land to be used for agricultural activity, such as but not limited to crop farming, livestock raising, dairy farming, poultry farming, or fish farming, you’ll need to look at the agricultural lending options specifically. Interest rates, down payment options and lender choices will be limited so look at all of your limitations upfront to ensure you qualify. I work with many of the lenders in Alberta who offer this specialized lending! They will want to see your capital.

This just scratches the surface on some of the factors when considering a move to rural life. Not to say the switch isn’t worth it, but just know all of your options! We’re very well-versed in rural property transactions and can also recommend excellent Realtors and Lawyers that specialize in rural purchases. You want the right team representing you – give me a call 403.875.2969.

As a Divorce specialist, I provide dedicated support to clients navigating the challenging process of separation or divorce, particularly concerning their future financial matters. I understand that home financing has distinct requirements and considerations compared to other forms of financing. With my expertise, I aim to assist clients in securing appropriate home financing solutions tailored to their specific circumstances during this significant life transition.

Home Financing:

• Requires specialized skills & strategies

• Requires different marketing plans

• Requires different staging techniques

• Can have many unexpected obstacles that general Realtors don’t anticipate and aren’t trained to handle

• Comes with many possible conflicts and battles (known equity, combined debts and such)

• Can delay your divorce if mistakes are made.

After 20 years of mortgage financing experience, I’ve mastered the unique skills & processes needed to deal with the many obstacles that typically arise when financing a home after a divorce or separation.

I also understand the emotions you are experiencing and I empathize. It’s hard and can get messy, but I am able to act as an unbiased professional to assist you with the process.

My primary responsibility is to guide you through the essential elements that should be included in your divorce or separation agreement. I will help you understand the necessary documents and income requirements for your purchase. By providing you with this knowledge, you will be well-prepared when you embark on the journey of finding a new home with one of my trusted realtor professionals, allowing you to begin your new chapter confidently.

Additionally, if you are considering purchasing the matrimonial home from your ex-spouse, rest assured that I have specialized programs available to facilitate this process. My aim is to make this transition as smooth as possible, empowering you to make informed decisions and achieve your housing goals in the midst of a challenging life event.

Top 4 issues faced by families when going through a divorce:

1. I often see clients ruin their credit in the process of closing creditor accounts and being late on joint mortgage payments waiting for the dissolution. We work with them to ensure they will meet mortgage standards for qualifying: rule of 2 trade lines, 2 year history, $2500 minimum limits and NO late mortgage payments.

2. The spouse with the big spousal/child support payment now can’t get a mortgage as the payments are considered large liabilities.

3. One party won’t have enough money for a down payment to buy another place after paying out all of the debts.

4. Don’t have enough money to pay the legal fees, so you get stuck in the cycle of not getting proper legal advice.

There is no other scenario where hiring the right professional is more important!

My custom-developed system for financing a new purchase in a divorce or separation

I’ve created my own unique mortgage system for purchasing a home after divorce. This system deals successfully with the many added complications which don’t exist in a typical transaction.

In addition to the typical knowledge and skills a professional must have to finance a home, in order to meet the unique needs of a divorce sale, my system addresses:

• Debt servicing calculations

• Lender requirements for income

• Payment either to or for children

• Payments either to or for Spousal Support

• Equity buyouts from one spouse to another

• Assist in construction the debts to be included in a buyout.

Did You Know?

Any lender (broker) will “say” they can help you with your financing. But if they don’t actually specialize in financing a home after a divorce then you could suffer.

Solutions!

With divorce rates well over 40% in Canada, it is only a matter of time before they will need your help with a solution. I work with a few lenders that are able to make mortgage financing easier for these clients. Here are a few ways in which we can help:

1. Flex Down Mortgage Program – There is a program offered by lenders that allow the client to borrow the down payment.

2. Deduct Support or Alimony from Gross income – lenders allow deducting the alimony or support payments from gross income, rather than showing the payment under liabilities. This will reduce the TDS average by 10% or…an average of buying a $250k condo vs. a $400k home to raise the children.

3. Spousal buyout program – This is a program offered by many lenders to allow one source to buy out the other spouse and take over the mortgage and property up to 95% of the LTV while still processing it as a refinance.

4. Cash Back mortgage Option – This is a product available through the lenders to offer them a mortgage with a Cash Back option to assist with legal fees and debt payments.

Much of my success with clients getting a divorce is a result of my client-focused approach. I provide a consultative approach rather than a hard-sell approach. I walk my clients through the process, establish a feeling of security & trust, and reduce your stress.

• I support, educate and nurture you through this time of upheaval and change

• I help you reduce conflict, overwhelm and unnecessary disagreements

• I help you maximize your bottom line financially

• I’m unbiased and NEVER choose sides

• I help you interact with lawyers and other professionals you’re working with in your divorce.

Buying your first home can be both exciting and daunting.  Ensure you have a specialist on your side to help you navigate through the process.  I have 20 years of experience assisting first time home buyers and want to be apart of your team to make it an enjoyable and memorable experience.

I work with a team of professionals and once you are pre-approved and know your budget then I can set you up with one of my amazing realtors, home inspector, appraiser (if required) and lawyers to help with your closing.  It is important to have a team that work together to ensure everything is done smoothly.

To ensure that you are looking and making offers on homes within your budget it is very important to get a pre-approval done.  This will help me understand your situation and be able to provide you with advice and products options to set you up for success.  To start this process, I will need the following:

1. Online app completed https://velocity.newton.ca/sso/public.php?sc=1hn000i0sjxts

2. Send me all required documents (these will be found in the intro email you receive)

3. Once I have the package, I can provide you with a pre-approval and review payments and such with you.

4. You will now go out with realtor and pick out your new home. Always ensuring you have min 10 days financing conditions, so the lender has time to review the file.

5. We will need to prove the downpayment sources:

   1. Savings or RRSP accounts we will need 90-day history of all funds.

   2. Gift we will need a gift letter signed (I will provide when we know the lender) and proof of funds being deposited with your account balance.

   3. Borrowed funds we will need proof of statement showing what the min payment will be once the funds are used for the down payment.

6. Once we receive an approval if appraisal is required, I will order from a third-party service (this is to avoid fraud)

7. Once lender has reviewed and signed off on all conditions, I will provide you with an approval letter where your cam sign off the financing condition with your realtor.

8. File will be instructed to our trusted lawyer and an appointment will be set for your signing.

9. The keys are given to you, and you have a new home, Congrats!

There are a number of steps but this will probably be the biggest purchase of your life so we want to ensure that you are set up for success.  If you have any questions with the process or how to get started give me a call 403.875.2969.

CMHC recently did a survey and 18% of new home buyers are new to Canada immigrants that you are buying homes.  If you are one of these then welcome, we are happy to have you here.  Now that you are here and working it maybe time to put down roots and purchase a home.  I have worked with many clients who were in the same position as you and I happily assisted them in the process to purchase their new home.

We have products available specifically for New to Canada residents and there are certain rules that apply to these types of purchases.

Qualified borrowers who have immigrated to Canada from another country or have been transferred to Canada by an employer can qualify for mortgage insurance with as little as 5% down payment.

• 90.01-95% LTV: → US or UK International to have a credit bureau demonstrating a strong credit profile OR → Two Canadian alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months from the following: ▪ Rental payment history confirmed via letter from landlord with supporting bank statements (letter to indicate name of tenant, monthly rent, length of tenancy, payment history) AND ▪ Hydro/utilities, telephone, cable cell phone, auto insurance, to be confirmed via letter from service provider or 12 months’ billing statements.

• Up to 90% LTV: → Six months’ bank statements from a recognized financial institution for borrower’s primary account OR → A letter of reference from the borrower’s recognized financial institution • Please note: Insurer will also consider factors that indicate the borrower’s ability to repay debt, including but not limited to: The borrower’s history of dealing with a financial institution, net worth or unencumbered liquid assets or investments.

I work with a tram of professionals and together we can walk you through the process and help you navigate your options.  Feel free to reach out so we can start the pre-approval process and once we have completed that step, I will set you up with one of my amazing realtors to find you and your family your new home.

Please call your lender to make payment arrangements if you have been effected by the fire due to evacuation or job loss to limit the impact to your credit.  If you require further assistance please contact our office at 403-637-0140.  Please find below a list of lenders contact centers.

ATB 1-800-332-8383

Bridge Water 1-866-243-4301

Canadiana Financial Corp.

Phone: 1-877-315-1633, Option  #6

Email: CFCmortgagesupport@canadianafinancial.com

CFF Bank 1-855-767-3031

CIBC 1-877-454-9030

CMHC 1-800-668-2642

Connect First 1-866-923-4778

First National customers 1-866-577-5509.

Genworth 1-800-511-888 or email homeassist@genworth.com

Home Trust 1-855-270-3630

MCAP customers please contact 1-800-265-2624

Merix/Lendwise Phone: 1-877-637-4911, Option #6 or Email: customerservice@merixfinancial.com

National Bank 1-888-835-6281

Radius Financial contact 1-866-550-8227 option 8

RBC 1-800-769-2511

RFA (Street Capital) 1.877.416.7873

RMG 1-866-809-5800

Scotia 1-800-472-6842

Servus Credit Union 1-877-378-8728

TD Bank Customer Service 1-866-222-3456

What is a Canadian Mortgage Appraisal?

Appraisal is a document that gives an estimate of a property’s fair market value. An appraisal may be required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.

The appraisal is performed by an “appraiser” who is typically a licensed individual trained to render expert opinions concerning property values. In an appraisal, consideration is given to the property, its location, amenities as well as its physical conditions.

What are Appraisal Methods?

Appraisers use three common approaches when establishing the value of a given property:

1. Cost Approach:
   In this approach the following formula is used to arrive at the property value: Value of the land (vacant), added to the cost to reconstruct the appraised building as new on the date of value, less accrued depreciation the building suffers in comparison with a new building.

2. Sales Comparison Approach:
   In this approach the appraiser identifies 3-4 comparable properties in the neighbourhood which have recently been sold. Ideally, the properties are close in vicinity (within a 1/2 mile radius of the subject property) and have sold within the last six months. The appraiser then compares the sold properties to the subject property. The factors used in the comparison include square footage, number of bedrooms and bathrooms, property age, lot size, view, and property condition.

3. Income Approach:
   In this approach the potential net income of the property is capitalized to arrive at a property value. This approach is suited to income-producing properties and is usually used in conjunction with other valuation methods. The process of converting a future income stream into a present value is known as capitalization.

After thorough exercise of the three approaches, a final estimate or opinion of value is correlated. When evaluating single-family, owner-occupied properties, the sales comparison approach is most heavily weighted by an appraiser.

Who owns the Appraisal?

Even though the borrower pays for the appraisal, the mortgage company owns it. This is because the mortgage company orders the appraisal on the borrower’s behalf, and the appraiser lists that mortgage company on the appraisal report. However, the borrower has the right to receive a copy. It is at the mortgage company’s discretion whether or not to give the borrower the original appraisal.

Can I use another mortgage company even after the appraisal has been completed?

Yes. In most cases, changing your mortgage company does not mean you will have to pay for another appraisal. The first lender can transfer the appraisal to your new lender. Some appraisal firms may charge a small fee, however, because there is clerical work involved in editing the appraisal to reflect the new mortgage company. This fee is called an “Appraisal Retype Fee.” The original mortgage company has the right to refuse to transfer the appraisal to another lender. In this event, you will need to get a new appraisal.

Who determines the market value of a property?

The seller of the property is the person who sets the price of the property (specially residential property), and not an appraiser. This is because sellers normally do not order an appraisal when selling their homes. Sellers wish to obtain the highest selling price possible for their homes and hence do not want to be bound by the appraiser’s assessment of their home. The real estate agent, who receives a percentage of the price as compensation and often represents the seller in the transaction, normally assists the seller in setting the sale price.

The real estate agent performs a comparative market analysis (CMA). The appraisal laws allows the real estate agents to perform CMAs without an appraiser’s license or certification. A CMA is a necessary part of the agent’s preparation for a listing and consists of examining sales of properties in the area to arrive at a listing price. The reliability of the CMA depends upon the agent’s experience and the characteristics of the property and the surrounding area. Typically, the agent will suggest a selling price to the seller based upon the analysis. However, the seller may not accept that price and choose to list the property for a higher price.

Assisting your Canadian Mortgage Appraiser

In order for the appraiser to perform his/her job properly there might be requirements for additional information. Some information that may be requested is as follows:

• What is the purpose of the appraisal?

• Is property listed for sale and if so, for how much and with whom?

• Is there a mortgage? If so, with whom, when placed, for how much, type of mortgage.

• If it is an income-producing property, a breakdown of income and expenses for the last year or two and a copy of lease might be required.

• Provide a copy of deed, survey, purchase agreement or other pertinent papers pertaining to the property.

• Provide a copy of current city assessment.

A Canadian mortgage broker (associate) is a self-employed professional that specializes in real estate financing and works specifically for you, the client, whereas Canadian bank specialists are employed specifically by the financial institution and works solely for that institution.

Every client is different and as such each one has a unique situation. The Unbeatable Mortgage Team treats all our clients with the attention and respect they deserve. Our mortgage associates at can help you to secure mortgage loan products in Canada at the lowest mortgage loan rates with out any hassles.

Depending on your Province, mortgage brokers must be licensed and are subject to a strict set of requirements. As well Mortgage Professionals must take continuing education courses in order to maintain their accreditation. Bank specialists in comparison are not licensed and require no formal training. Therefore because of the licensing requirements and continuing education that a mortgage broker has to obtain and sustain you know when dealing with them that they are always up to date with all current Canadian real estate and mortgage financing market rules and regulations which obviously will ultimately instil the utmost confidence in dealing with them vs. dealing with a Canadian bank specialist.

Canadian Mortgage Brokers vs. Banks – PRODUCTS

The benefit of using mortgage brokerages, like The Unbeatable Mortgage Team, is the fact that have the ability to shop multiple Canadian lenders (banks) that write Canadian home loans for all types of credit clients. A mortgage broker has access to multiple Canadian home loan products whereas your local bank or credit union only has access to their own individual products.

Because mortgage brokers don’t work for a specific lender, you’re assured that you will be given impartial advice. The Unbeatable Mortgage Team works closely with both large public Canadian banks and small private Canadian trust companies. As a result, we are able to shop the market for you, our client, to access the best possible Canadian mortgage products. A bank specialist has a limited number of their own institutions products and while it may not be the best mortgage product out there, they will do their best to sell you their institutions mortgage product even though it may not be the best product for you.

Canadian Mortgage Brokers vs. Banks – CREDIT REPORTS

When a Canadian mortgage brokerage, pulls a credit bureau we only need to pull it once to be able to evaluate your situation and be able to recommend mortgage options. This one inquiry allows us to shop your mortgage to multiple Canadian Lenders.

The Unbeatable Mortgage Team will evaluate home buyers applications, analyzing each person’s credit situation to determine which Canadian lender is the best fit for that person’s needs. We submit the home buyer’s mortgage application to one or more lenders, and works with the chosen lender until the loan closes. A good mortgage broker can find a lender for just about any type of credit. Mortgage brokers can often find a lender who will make loans that a bank refuses (example: due to problem credit).

In comparison to your local bank where they pull your credit report and if you are approved or not or are just not satisfied with their offer, then you are left shopping elsewhere and having your credit report pulled again and again. This causes client frustration and ultimately costs you multiple credit pulls which negatively affects your credit score. The overall effect with the lower credit score is that you are not eligible for the same loan programs as before and in the end you will ultimately pay more for your mortgage.

Obtaining Your Own Credit Reports

Order your credit reports and scores from both Equifax and TransUnion credit reporting agencies before you visit a bank or broker. Personal copies of current reports should provide enough details for them to give you an opinion of the types of loans they can offer you.

The lender you decide to use will access your credit files, but taking your personal copies to the initial interview avoids multiple credit pulls that can lower your scores. Requesting your own credit reports does not affect your scores.

TIPS FOR SELECTING A CANADIAN MORTGAGE BROKER

When choosing a Canadian mortgage broker you should consider the following tips:

1. The mortgage broker should help you decide on whether getting the “best available rate” is more important, or if you want to deal with the institution that will actually lend you the money and provide you with service after funding.

2. Make sure that you feel comfortable with whom you are going to do business. Can this person answer all your questions satisfactorily? Does he/she act in an ethical and professional manner?

3. Beware of high-pressure sales tactics. You should never accept a loan that you do not understand. You should walk away from anyone who pressures you or makes you uncomfortable. You are not obligated to proceed at any time in the process.

4. Ask friends, family and co-workers for references. They are a valuable resource, and usually can provide the name of someone they have used and found to be trustworthy. Ask them if their broker communicated with them throughout the loan process. Referrals are probably your best way to find a good Canadian mortgage broker.

5. Beware of claims that seem “too good to be true,” and run from upfront fees. For example when you hear “no closing costs” little red flags should go up.
   So in conclusion, if you have the ability to use the services of a professional Canadian mortgage broker and have that mortgage broker do all your mortgage leg work at no cost, why would you not take advantage of the offer?

Mortgage Insurance Canada

There are three different Canadian mortgage insurance providers:

• CMHC

• Genworth Financial Canada

• AIG United Guaranty

Canadian Mortgage Housing Corporation (CMHC) Mortgage Insurance

Mortgage insurance protects the lender against payment default by the homebuyer. Most lenders require it if the homebuyer has less than 20 percent of the purchase price as a down payment. By providing mortgage loan insurance to lenders, CMHC enables homebuyers to finance up to 95 percent of the purchase price of a home.

Over the years, CMHC mortgage insurance products have responded to the changing needs of Canadians. CMHC introduced innovations such as purchasing a home with just five per cent down, financing renovations at the time of purchase and most recently the opportunity to refinance up to 95 per cent of the equity in the home, to provide homeowners with greater choice and home financing flexibilities.

CMHC led the market with the introduction of emili, CMHC’s automated insurance risking systems, in 1996. This on-line system makes the application process for mortgage loan insurance faster and the risk assessment of the application more precise. Through innovations such as emili, and the experience we have gained through its use, CMHC is able to pass on the benefits to Canadians in the form of lower premiums, and make homeownership more affordable.

Visit the CMHC and Genworth websites for more information.

Genworth Financial Mortgage Insurance

If you’re purchasing a home and are borrowing more than 80% of the value of the property, the mortgage must be insured. The insurance protects the lender against borrower default. This enables you to purchase a home with as little as a 5% down payment. Mortgage insurance is not life or disability insurance.

Who is Genworth Mortgage Insurance Canada?

Genworth Mortgage Insurance Canada together, with its related affiliates, is the largest private sector mortgage insurance company in the world and the only private sector supplier of mortgage insurance in Canada. Genworth works in partnership with lenders, mortgage brokers, real estate agents and builders to make housing more affordable to Canadians. We combine our experience in mortgage default insurance with our strength in technology and our extraordinary commitment to quality to provide our customers with the level of service they expect.

Genworth offers a competitive choice of flexible mortgage default insurance products for the purchase, renovation or refinancing of homes across Canada. These include a portability feature, introduced to Canadians by Genworth. We also work with lenders to provide homebuyer seminars and we offer a consultation service to lenders working with borrowers experiencing temporary difficulty in meeting their mortgage payment commitments.

Genworth understands the importance of fast, reliable processing of mortgage insurance applications. GE Excel O, our fully automated delivery and decision system enables us to receive, process and in many cases approve applications within minutes.

Genworth has been known for years as a name trusted for quality and dependability.

How Much Does Mortgage Insurance Cost?

There are two fees associated with mortgage insurance: the underwriting fee
and the premium.

Visit the CMHC and Genworth websites for more information.

AIG United Guarantee Mortgage Insurance

For more than 40 years, AIG United Guaranty’s parent company has been part of the Canadian insurance marketplace. AIG is now proud to be viewed as a catalyst of change and one of Canada’s newest private mortgage default insurers.

AIG is committed to offer mortgage lenders, brokers and home buyers:

• Product Innovation.

• Flexibility in our underwriting guidelines and processes.

• Choice, supporting a wider range of needs for greater access to home ownership.

• Financial Strength and broad risk-management experience that comes with the name AIG United Guaranty.

It’s an exciting time to be part of the Canadian housing finance community. You can trust in AIG’s commitment to meet your business needs, both today and in the future.

Visit the AIG United Guaranty web site for more information: http://www.aigug.ca/

For many of us, buying or selling a house will be the largest financial transaction we will ever make. On a business level, a commercial real estate transaction can be one of the most significant commercial transactions your company might participate in.

Today, the successful and timely closing of a real estate purchase or sale is dependent on the cooperation of a number of professionals, including the real estate agent, mortgage broker, land surveyor, home inspector, insurance agent and, of course, your lawyer.

Professional, experienced lawyers and legal assistants take pride in making these experiences as stress free as possible for you by coordinating all aspects of the closing. They will keep you fully informed of every step in the process and do all that they can to ensure your real estate transaction closes on time and your costs are minimized. Years of experience in completing these transactions, whether for the sophisticated commercial real estate investor or for the first-time home buyer is what you want to look for when sourcing a mortgage lawyer.

Experienced lawyers can help protect your home, your business or your major investment.
If you’re buying a home, your lawyer should:

• Help you understand the purchase contract, including how you will take title on the property.

• Check that there are no covenants, easements, liens, etc. registered against the property that will impede your use of it.

• Prepare and register all the legal documents.

• Clarify the terms of the mortgage and work with your bank, if necessary, to modify them.

• Scrutinize the adjustments, including taxes owing and utilities costs paid, prior to the transaction closing.

• Attend the closing and review all the papers you will be required to sign.

• Arrange title insurance protection to protect you from losses due to title defects.

• Ensure you receive a valid registered ownership subject only to the liabilities you have accepted.

If you’re selling a home, your lawyer should:

• Review the binder and review or prepare the purchase and sale agreement, including negotiating its terms.

• Prepare the deed and power of attorney if necessary.

• Deal with title issues as they arise and help correct them.

• Attend the closing and review all the papers you will be required to sign.

• Arrange for transfer of security deposits.

• Arrange for insurance certificates if needed.

How much does this all cost? Typically, legal fees are higher when you buy than sell because the role of the buyer’s lawyer is more extensive. Most fees range from $650 to $1,100 for an average home whether you’re the buyer or the seller.

Some lawyers charge a flat fee for specific services and others bill by the hour. If you are paying by the hour, make sure you understand what the final cost is likely to be and insist on regular accounting for charges. Usually, a lawyer can easily estimate costs related to a real estate transaction and his or her fees will only go higher if something goes wrong. Remember, even if your deal does not close, you’ll still owe your lawyer for his or her time.

1. Don’t apply for new credit:
   It may seem natural to apply for a credit card at a home improvement store or a furniture store when you are about to become a homeowner, but applying for credit can lower your credit score. Not only will you lose a few points because of a credit inquiry, but if you are approved for a new credit, a lender may worry that you will spend up to your new credit limit and then default on your loan.

2. Don’t close any credit account:
   You may be feeling that this is a good time to get your financial house in order by closing unused credit accounts or transferring your debt to a new credit card with a zero balance transfer offer. While that is a smart move financially, it’s a bad one for your credit score because you lose points when you have a higher usage of debt compared to your limit on one credit card and to your overall credit availability. Ait until your closing is complete before you make these changes.

3. Don’t move your money without a paper trail:
   Your lender will need the most recent bank statements before you go to settlement, so if you have unusual deposits you will need to provide complete documentation of where the money came from. If possible, it’s best to move the cash you will need for your home purchase into one account before you apply for the mortgage. If not, make sure you have complete and accurate records readily available.

4. Don’t increase your debts:
   In addition to your credit score, your debt to income ratio is extremely important to a loan approval. If you take on more debt you will be in danger of going above the maximum acceptable debt-to-income ratio.

5. Don’t skip a payment or make a late payment:
   One of the most important elements of your credit score is your history of on-time, in-full payments, so don’t get so caught up in your move that you forget to keep up with paying basic bills.

6. Don’t buy a car:
   You may be feeling that a new car would be a nice addition to the driveway of your new home. Resist that feeling. Even if you can easily afford a new car, the depletion of your savings or the addition of a new car loan could derail your mortgage application. Wait until after you have moved to switch to a new car.

7. Don’t change jobs if you can help it:
   While a job change could mean a raise or a path to a better future, it could also delay your settlement. Your lender needs to verify employment and will need paystubs to prove your new income before your loan can go to settlement.

8. Don’t spend your savings:
   You’ll need cash on hand at the settlement for your down payment and closing costs and your lender may even verify your cash reserves one more time, so make sure the funds stay in place.

In other words, no matter how hard it is at this exciting time, it’s better to do nothing than to do anything.

If you have any questions regarding this please give us a call.