Waiting to Close on Your Home? Don’t Do This!
Your offer is accepted and you’re so close to moving in! New homeowners need to avoid these actions that can delay or halt the process of closing on their new home.
Glenn Elliot, ERA Justin Realty Broker Associate, explains, “Buying a new home hinges on several key things falling into place: finding the right property, negotiating a price you can afford and securing the financing to pay for it. Many homebuyers successfully navigate all three criteria only to make some critical missteps prior to closing that can jeopardize the deal.”
Here are a few tips on what not to do while waiting to close on the home you are buying.
Don’t Apply for a Credit Card. Using your existing credit card for minor expenses will not affect most buyers, but opening a new one can absolutely delay closing. Refrain from saving that extra 10-15% off at a department store until after the closing.
Don’t Make Any Major New Purchases on Credit. Excited as you are about moving into your new home and decorating, do not purchase major items, such a car or appliances. Wait until the deal closes before finding that new fridge.
Don’t Change Jobs. Some buyers change jobs without letting their lender know because they think that if it’s a better salary, it won’t matter. Wrong. Most lenders require 30 full days of paystubs, so changing jobs will delay closing until the 30-day paperwork is obtained. And in some cases, it can even kill the deal altogether.
Don’t Fall Behind on Any Payments. Nothing is more critical to your loan than your FICO score. It affects your rate, the loan program and the cost of any mortgage insurance. Make sure you continue paying any credit card bills regularly and stay current on car or other loans.
Don’t Move Money Without a Paper Trail. When a lender pre-approves you, the approval is based on the current state of your finances. You want to maintain that state and be transparent. Sometimes buyers shift their money around to better position themselves, but that’s a mistake. If a lender sees you moving money around various accounts, you will need to give them a detailed accounting of why you moved it.
Very few buyers, especially first-time buyers, are housing market or mortgage interest experts. Working with trusted professionals, such as Glenn Elliot, can help you make the right decisions. To connect with Glenn, or any of our experienced Real Estate Agents, call 201.939.7500.