The Do’s and Don’ts After Mortgage Pre-Approval: A Guide for Toronto & GTA Homebuyers
Whether you’re buying your first home or upgrading to a larger space, understanding the importance of maintaining financial stability after receiving a mortgage pre-approval is crucial. Many homebuyers in across Toronto and the GTA are unaware that even after getting pre-approved, there’s still a possibility of being denied a mortgage if their financial situation changes. I asked my friend and Mortgage Agent, Angela Dance to share why this happens, as well as some of her best tips to ensure you can protect your pre-approval status. Let’s dive in!
Why Pre-Approval Isn’t a Guarantee
A mortgage pre-approval is an excellent tool for gauging what you can afford and boosting your confidence during your home search. However, it’s important to remember that a pre-approval is based on your financial situation at the time of your application. It’s not a promise of a final mortgage approval. says Angela. Any significant changes in your financial status could potentially derail your home purchase.
To avoid last-minute surprises, here are some of Angela’s critical Do’s and Don’ts to keep your mortgage approval on track:
What NOT to Do After Being Pre-Approved
DO NOT lease or finance a new car
Taking on new debt can significantly impact your debt-to-income ratio, which is a crucial factor that lenders evaluate.DO NOT apply for new credit cards or loans
Opening new lines of credit can lower your credit score and raise concerns for lenders about your financial stability.DO NOT rack up credit card balances
High credit utilization can negatively affect your credit score, making you appear as a riskier borrower.DO NOT miss bill payments or make late payments
Maintaining a good credit score is vital. Even one late payment can have a significant impact on your credit report.DO NOT co-sign for someone else
Co-signing a loan means you’re responsible for that debt in the eyes of lenders, which can impact your mortgage qualification.DO NOT get a new job or leave your current one
Employment stability is key to mortgage approval. Changing jobs or becoming unemployed can delay or even derail your mortgage process.
Angela’s Best Mortgage Advice
During this critical period, try to keep your financial life as steady as possible. Avoid making significant changes unless absolutely necessary. If something unexpected does happen—like a job change or a large expense—reach out to your Mortgage Agent immediately. By being proactive, you can address potential issues before they become problems and keep your path to homeownership as smooth as possible.
If you’re looking to buy a home in Toronto, Caledon, Brampton, Barrie or anywhere in the GTA, understanding the mortgage process is essential. Maintaining your financial stability after pre-approval is one of the most important steps you can take. If you have any questions or need personalized advice, don’t hesitate to reach out. My team and I are here to guide you every step of the way toward securing your dream home.
Have questions about getting a mortgage? I can connect you with Angela, or you can reach out to her directly. Her contact info is below:
