What Not To Do While Waiting To Close On Your Home

What Not To Do While Waiting To Close On Your Home

When going through the home buying process, there are a lot of mishaps that can delay or even completely halt the process all together. Sometimes uninformed buyers inadvertently make purchases or changes that creditors or lenders see as warning signs and can or will delay the buying or closing date of a home. Catherine Nimmo, ERA Justin Realty Sales 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 the deal 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

For most borrowers, using their existing credit card for minor expenses will not affect them, but opening a new one can absolutely delay closing. Restrain from saving that extra 10-15% off at a department store applying for their card. 

Don’t Make Any Major New Purchases on Credit

Now is not the time to go out and purchase a new car or, as excited as you are about moving into your new home and decorating, do not purchase major items, such as 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 at all costs. Sometimes buyers make the mistake of shifting their money around to better position themselves, but this is 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. 

Determining whether you’re ready to buy your first home can be intimidating. Very few buyers, especially first-time buyers, are housing market experts or have read up on mortgage interest rates until it’s time to take the plunge. No matter how uncertain you may feel at any point on your journey, working with trusted professionals, such as Catherine Nimmo can help you make the right decisions. To connect with Catherine, or any of our experienced Real Estate Agents, call 201.939.7500.