Closing Mistakes To Avoid When Buying A Home

The seller has accepted your offer, the inspector didn’t find any underground streams or shaky foundations, and the closing date is set. Your appraisal came in over asking price. You’re in the homestretch! While you can breathe a little easier, remember, the deal’s not done until everyone signs all the (zillion) documents at the closing table. However, your lender can still change their mind and you may not get to purchase your dream home!

Here are 5 closing mistakes to avoid when buying a home.

1. Don’t mess with your income-to-debt ratio

The ratio of your monthly income to your monthly debts is one of the main factors the lender considered when qualifying you. While it’s tempting, don’t take out a big loan for the new deck you want to install when you move into your new place or new furnishings. Don’t sign the lease on the new Audi that will look perfect in your new driveway. The bank looks at lease payments like any other debt payment.

2. Don’t disappear

Time is of the essence! Be sure to keep in touch with your lender and be readily available to immediately address any last-minute concerns.

3. Don’t change jobs

Lenders love stability. Most lenders prefer to have a two-year job history in hand, so making a big career move could slow things down, or squash the deal entirely.

4. Don’t open new credit cards

Yes, you’ll be buying furniture to fill those lovely rooms. Yes, you might need a new fridge. And yes, new dishes to match the new kitchen would be splendid. But resist the lure of opening new credit cards until after closing. Doing so can affect your credit score. For now, just open catalogs.

5. Don’t be late

Even though you may have been riding the real estate roller coaster and life’s been chaotic, be sure to stay current with all bill payments. Late payments, too, can affect that all-important credit score.