Receiving a mortgage approval for your new home is a significant milestone, but there are crucial steps to follow afterward to ensure a successful transition to homeownership.
- Maintain Your Financial Stability: Keeping your financial situation steady is essential. Avoid changing jobs, making large purchases, or altering your credit profile, as such changes can affect your mortgage approval status until you have moved in.
- Postpone Updating Your Driver’s License: It is very exciting to buy a new home and of course you want to move on with life, but you will be required to present government issued photo ID to the lawyer. I have seen mortgages not fund on time for this reason so hold off on the new ID.
- Secure the Best Home Insurance: With home insurance being required for mortgage approval, take this opportunity to shop around for the most comprehensive and affordable coverage that fits your needs.
- Stay Available for Legal Appointments: Staying in town to meet face-to-face with your lawyer is a necessary part of the completion process. Should your schedule require travel, inform your lawyer well in advance to circumvent potential issues.
- Organize Your Property Tax Arrangements: Property taxes can catch both new and experienced homeowners off guard. If you plan to enroll in the city’s tax installment program, be sure to do so before meeting with your lawyer. If you choose to have your taxes included with your mortgage, keep in mind that the timing of your purchase may require you to pay extra upfront to ensure there’s enough to cover the full year’s taxes. Your lawyer will review the property tax situation in detail. If the seller has pre-paid taxes, you’ll need to reimburse them by bringing additional funds to your lawyer. Enrolling in a tax installment plan can help avoid this. If you’ve refinanced your home and your original mortgage included property taxes, your tax account balance was likely applied to the new mortgage, meaning you’ll need to cover the full year’s taxes out of pocket. Ultimately, it’s your responsibility to ensure your property taxes are properly set up, so be sure to confirm your arrangements.
- Notify Companies of Your New Address. It’s vital to update your address with service providers and to redirect your mail via Canada Post. A hazard of being an adult is that it is our responsibility to make sure we still pay our bills on time even if they are delayed in getting to us.
- Double-Check All Arrangements. A few days prior to moving day, contact your lawyer and mortgage broker to confirm that everything is on track. This can provide peace of mind and assurance that the closing will proceed seamlessly.
There you have it— A few pointers on how to complete the process like a seasoned professional!