What NOT to do before Closing
For a minute or two it might feel like you’re actually dreaming; the paperwork is done, the place has been found, the offer has been made and you are marking the calendar with the date you will close on your new home!
Even though you’ve been pre-approved for your new mortgage there are some actions that can stall and even halt the process entirely. Your mortgage loan officer should provide you with a detailed list of things NOT to do as your closing date draws near.
These Top Three most often trip up home buyers, so let’s go over what they are and how to avoid letting them side track you from your home owner dreams coming true!
- Maxing Out a Credit Card – the excitement and joy of the new home purchase will put any of us in such a great mood we cannot help but want to celebrate! Now is precisely the wrong time to go furniture shopping! Unless you have extremely strong will power, don’t tempt yourself by even window shopping. The allure of filling your new home with new furniture and curtains and pillows and rugs – well, it’s too much for most of us to resist. The damage to your income to debt ratios may be enough to have that mortgage approval withdrawn. Don’t risk it.
- Changing Jobs – unless this is something you have no control over, say a lay off or worse, being fired, this is a great time to buckle down on the job and even work harder toward that promotion or pay raise. Even if a great offer suddenly looms on the horizon, check with your loan provider before making any changes to see how it will affect your approval status. Some loan types have employment length requirements and any change, even one for more money, can significantly impact you.
- Opening a New Line Of Credit – or taking out a new loan of any kind. This definitely affects your credit score and the income to debt ratios used to qualify you for your mortgage in the first place. If you just have to have a new car, wait until the purchase has closed! You may happily discover you now qualify for better loan terms in some cases when you own your home.
Once you are approved for your home loan it’s important to maintain the good financial standing that gained you the approval in the first place. Your income to debt ratios should remain the same at the very least, and diligence should be applied to ensure that all bills are paid and paid on time. A negative “ding” on your credit report is the last thing you need just before your closing date.