What To Avoid Before Closing Your New Home

You’ve found the right home and closing is not that far away, and you are making plans to move and put personal touches on your new home- but before you make any moves there are some things you need to consider...

It’s understandable; you’re excited; you’ve found the right home, negotiated a contract, filled out a loan application and completed inspections! Closing is not that far away, and you are already making plans to move in and put personal touches on your new home.

Even if you have an initial approval on your mortgage, little things can derail the process. It is important to recognize that the home buying process is not over until the papers are signed at settlement and funds distributed to the seller. The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them. Before making any significant changes, read this list of things you should avoid doing.

Most lending and real estate professionals recommend NOT to:

• Make any new major purchases that could affect your debt-to-income ratio

• Buy things for your new home until after you close

• Apply, co-sign or add any new credit

• Close or consolidate credit card accounts without advice from your lender

• Quit your job or change jobs

• Change banks

• Talk to the seller without your agent

Your real estate professional and lender are working together to get you into your new home. It’s understandable to be excited and feel you need to be getting ready for the move. Planning is fine, but make sure not to do anything that would affect your credit or income while you’re waiting to sign the final papers at settlement!

We want you to be in your dream home as much as you do, so take it from an old pro- wait to make any significant changes until the home is signed, sealed and delivered as yours (officially)!