How to avoid closing day problems

Prevent financial delays

Financial problems may cause mortgage delays. Here are a few ways you can keep your finances healthy for closing day.

Avoid changes to your credit report

Any changes to your finances, such as a new car loan, could delay your closing date. Even small changes could impact your credit rating and cause delays. A lender could withdraw their offer. And you'd have to secure another mortgage, which could take weeks. 

Stay at your job

Changing jobs means a change in your income and credit reportOpens a popup. In the weeks leading up to closing day, it's best to keep your income the same or higher. And stay where you are until you close the deal on your home. For instance, going from full-time to part-time isn't the best idea. Lenders prefer a steady and consistent job history. Talk to your lender if you do get a new job. 

Avoid applying for new credit

Wait to buy a new car or finance a wedding, at least for now. Any new debt or large purchase may cause unwanted financial problems. Contact your lender if you already applied for new credit while getting your mortgage. The more transparent you are about your finances, the better.

Get financially fit

Here are other ways to keep your credit score up:

• Pay bills on time
• Control your spending
• Keep a budget
• Pay off debt
• Invest in a mutual fund or RRSP
• Don't co-sign a mortgage for someone else
• Avoid get-rich-quick schemes