If you have been approved for a mortgage and are waiting for your deal to close, did you know that the lender can still cancel your approval?

The following tips can help you avoid a financial headache as you try to get your mortgage deal finalized.

1. Changing jobs or employers is a bad idea

Lenders like to see that you have stable employment and switching jobs or careers can greatly affect their decision to approve your mortgage on closing.

2. Don’t apply for more credit

This will have a huge impact on how much money you will be approved for and may also affect your credit rating.

Common examples of this are purchasing a new car or funding a home renovation project using credit.

Most lenders run a final credit report before the closing of your mortgage to make sure you are still in good financial standing, so any new changes in your credit will come to light at that time.

3. Maintain credit profile

Be sure to make all your payments on time and not to go over your limit on your credit cards or lines of credit.

Missing payments or overusing your credit can indicate that you are not financially responsible and the lender may question whether you will be able to make your mortgage payments on time.

4. Be cautious of large sums of money deposited into your bank account

You will be required to provide a minimum of 6 months of your bank account statements prior to getting your mortgage finalized. If you have any large deposits into your account outside of your regular income sources, this may raise red flags.

For example, if you recently sold a car, you will want to keep the bill of sale. Or if you received an income tax refund, you will need to show proof.

All-in-all, any deposits being used will need to have a paper trail showing where the funds came from or they will be questioned by the lender.

5. Save your own credit for you

With this, you will want to avoid co-signing a loan for someone else. In the eyes of the lender, this debt will be seen as 100% liability towards you. Co-signing for a loan will show up on your credit report and will also lower the amount you can qualify for on your mortgage.

6. Be truthful

Be honest with the information you give your mortgage broker. The information you give your mortgage broker upfront is what will be used to qualify you for your mortgage.

You should be ready to provide your details about your income, properties owned and other assets, as well as any debts and your financial history, including if you have been through a power of sale, bankruptcy or a consumer proposal.

Ultimately, all your financial details will need to be verified with pay stubs, investment and banking statements and your credit report, so you might as well be honest from the beginning.

7. Keep the credit you have

Having access to less sounds like a good idea, right?

Even though this sounds like it would be favourable, as in having less available debt, this could actually have a negative impact on your credit score.

By decreasing the amount of debt you have available, you may actually increase your debt-to-credit ratio and lower your credit score.

Keeping credit available that you have had for a long time, with a good history of repayment, is actually very good and shows positively on your credit behaviour.

8. Know your partner’s finances

If you plan on getting married while trying to get a mortgage, your partner’s credit can affect your ability to get your mortgage approved.

If there has been a history of financial troubles, be sure to discuss them with your mortgage broker upfront so you know what your options will be.

9. Make sure your approval is current (up-to-date)

The mortgage environment is always changing.

Requirements to qualify, changes in mortgage products and rates, as well as changes in your credit will all affect the mortgage products you will be able to get.

If you have a pre-approval from several months ago, it may not be valid in the current mortgage environment. Most lenders will consider a pre-approval valid for up to 4 months.

Be sure to contact your mortgage broker if you need an extension on your pre-approval.