10 Things to Do After Mortgage Approval to Ensure a Smooth Closing
Lisette Amalfi
March 05, 2025
Congratulations! Getting your mortgage approved is a huge milestone in your homebuying journey. But before you celebrate, there are still important steps to take to ensure a smooth closing process.
As a mortgage broker with 23+ years of experience helping homebuyers in Hamilton, Ancaster, and across Ontario, I’ve guided many clients through this crucial period. Here’s how to stay on track from approval to closing day.
1. Avoid Major Financial Changes 🚨
Your lender approved your mortgage based on your current financial situation. Any changes could put your approval at risk.
✔ Hold off on major purchases like a new car, furniture, or vacations—large expenses can impact your credit score and debt-to-income ratio.
✔ Don’t apply for new credit cards or loans. Even a small inquiry on your credit report can cause delays.
✔ Stay at your current job. A sudden career change could affect your mortgage approval.
2. Stick to Your Budget 💰
It’s tempting to start spending on home upgrades, but staying within budget is key.
🔹 Closing Costs: Set aside 1.5%–4% of the home price for legal fees, land transfer tax, title insurance, and other expenses.
🔹 Moving Expenses: Whether hiring movers or renting a truck, factor these costs into your budget.
3. Review Your Mortgage Commitment Letter 📜
Your mortgage commitment letter outlines your loan details. Double-check:
✅ Interest rate & term – Ensure it aligns with what you expected.
✅ Conditions before closing – Some lenders require proof of home insurance, updated pay stubs, or additional documents.
✅ Prepayment options – If you plan to make extra payments, check if there are penalties.
Need clarification? I’m happy to walk you through the details.
4. Meet All Conditions on Time ⏳
Your mortgage approval may come with conditions that must be met before the lender releases the funds. These may include:
✔ Proof of home insurance.
✔ Final purchase agreement.
✔ Updated financial documents (e.g., pay stubs, tax returns).
✔ Property appraisal or home inspection results (if required).
How I Can Help: I’ll ensure all paperwork is submitted on time, so your closing stays on track.
5. Avoid Large Cash Deposits Without Documentation 🏦
If you receive or deposit a large sum of money before closing, be prepared to explain where it came from.
✅ Acceptable sources include:
- Savings or investments
- Gifted funds (must be documented with a gift letter)
- Sale of an asset (provide receipts or proof of sale)
6. Arrange for Home Insurance 🏠
Lenders require home insurance before closing. Shop around for the best rates and ensure your policy meets lender requirements.
🔹 Pro Tip: If your new home is in a flood-prone or high-risk area, double-check coverage details.
7. Plan Your Final Walkthrough 🔎
A final walkthrough (if included in your contract) ensures the property is in the expected condition before closing.
✔ Confirm that all agreed-upon repairs have been completed. ✔ Check for any damage or missing appliances.
✔ Test electrical, plumbing, and heating/cooling systems.
8. Work Closely with Your Lawyer ⚖️
Your real estate lawyer handles key closing tasks, including:
🔹 Title search – Ensures no outstanding liens on the property.
🔹 Property registration – Legally transfers ownership to you.
🔹 Handling funds – Manages down payments, closing costs, and lender disbursements.
What You Need to Do:
✔ Provide funds for the down payment & closing costs.
✔ Review and sign final legal documents.
9. Monitor Your Credit and Financial Activity 📉
Even after approval, your lender may perform a final credit check before releasing funds.
✔ Keep making all payments on time.
✔ Maintain a consistent balance in your accounts.
✔ Avoid overdrafts or missed bill payments.
10. Stay in Touch with Your Mortgage Broker 📞
If anything changes in your finances, let me know ASAP. Addressing potential issues early can prevent closing delays.
Final Thoughts 💡
The period between mortgage approval and closing is critical. By staying financially stable, meeting all lender requirements, and keeping an open line of communication, you can ensure a stress-free closing.
Need guidance? I’m here to help every step of the way. Let’s make sure everything goes smoothly so you can focus on moving into your new home!
📧 Email: lamalfi@tmacc.com 📞 Call: 905-929-1199