Applying for a mortgage can feel like navigating a maze. Between the paperwork, financial checks, and the pressure of securing the best rate, it's easy to make mistakes. To help you sail through this process smoothly, here are a few things you should never do when applying for a mortgage.

1. Don't Make Large Purchases
It's tempting to buy that shiny new car or the latest gadgets, especially when you're excited about your new home. But hold off on major purchases until after your mortgage is approved. Large expenses can alter your debt-to-income ratio, making you look riskier to lenders. Keep your spending in check to ensure your financial picture remains stable.

2. Avoid Changing Jobs
Stability is key when applying for a mortgage. Lenders want to see a steady employment history. Changing jobs, especially to a different industry or a lower-paying position, can raise red flags. If possible, stay in your current job until your mortgage process is complete. If a job change is unavoidable, discuss it with your lender beforehand.

3. Don't Open New Credit Accounts
Every time you apply for new credit, whether it's a credit card or a loan, it triggers a hard inquiry on your credit report. Too many inquiries can negatively impact your credit score, which is a crucial factor in mortgage approval. Resist the urge to open new credit accounts until after you've secured your mortgage.

4. Avoid Large Deposits Without Documentation
Lenders scrutinize your bank statements closely. Large, unexplained deposits can be a red flag. If you need to make a significant deposit, be prepared to provide documentation explaining where the money came from. Transparency is essential to avoid any hiccups in the approval process.

5. Don't Skip Out on Bills & Don't Avoid Your Taxes!
Your payment history is a major component of your credit score. Missing even a single bill payment can lower your score and raise concerns with your lender. Make sure all your bills are paid on time, every time, to maintain your financial health and improve your chances of mortgage approval. This applies to your annual taxes as well - make sure you are up to date with the CRA to avoid any issues with your mortgage approval process.

Navigating the mortgage application process doesn't have to be stressful. By avoiding these common mistakes, you'll be well on your way to securing the home of your dreams. Remember, staying financially stable and transparent with your lender can make all the difference.

Have questions or need personalized advice? Feel free to reach out! As a dedicated Realtor, I’m here to guide you through every step of your home-buying journey. Happy house hunting!