What Should I NOT Do When Closing On A Home?
You’ve found your dream home in Jupiter or maybe Juno Beach. Your offer is accepted, and your closing date is 20 days away. We know your mind is on furnishing your house and buying supplies. And, you’re probably a little overwhelmed with all that goes into moving. Don’t jeopardize your chance at a successful closing by making one of these errors.
Here are 7 things NOT to do before closing on your new home:
Change jobs: Is your boss is driving you completely mad? Does your co-worker smell like dirty socks? Hold off on that bold career move for right now! Your lender is looking for stability. Unless you are making the jump for MORE money hang tight.
Increase debts: Your debt-to-income ratio is a big factor in the loan amount you have been approved for. Don’t jeopardize your final loan approval by taking on new commitments. This includes co-signing loans for another party which you could be held responsible for.
Apply for new credit: Oooh! That introductory credit card offer looks like an incredible deal! The problem is you may have just increased your available credit, thereby increasing your potential risk to a lender.
Move money without a paper trail: The money has to come from somewhere, so make sure you have the documentation to prove its origin. Gifts are no problem, so long as they are disclosed and are truly not expected to be repaid.
Skip a payment or make a late payment for a bill: This is the time to be extra careful making payments on your existing obligations. A late or missed payment can have a negative impact on your creditworthiness in no time!
Spend your savings: Your lender loves your rainy day fund. It makes them feel like you have margin in your financial life, should the unexpected happen. Don’t deplete your savings in the days leading up to closing.
Buy big-ticket items: Yes, that brand new Escalade would look incredible parked in your new garage, but hold off for now! The car dealer is far less picky than your mortgage lender, so first thing first.
Lenders will continue to check your credit, income, and job stability up to just before closing to see if anything has changed that may impact your ability to qualify.
Source: Florida Realtors®, Pat Zaby, Betterhomeowners.com
