Closing on a new home should be an exciting time, but many people spend that period in frustration due to preventable mistakes. Don’t let the closing process cause you stress.
With preparation and a little know-how, you can glide smoothly through the last few weeks before you officially own your new home.
7 Closing Process Mistakes You Can Avoid
1. Don’t purchase any expensive items.
While it may seem perfectly acceptable to buy some furniture or appliances for your new home, that’s a red flag for lending companies. Even if you’ve just sold your previous home and your account looks great, overcome temptation and simply wait until after you close.
2. Don’t go anywhere your lender cannot reach you.
Even if your credit is nearly perfect and your closing process is straightforward, don’t be surprised to hear from your lender from time to time. Questions arise and need a swift response, so make sure you’re available by phone or email.
3. Don’t change jobs.
Sometimes situations arise that are beyond your control. If you lose your job, that’s one thing. But please defer switching jobs until after you close, if at all possible. Depending on your financial situation, you risk your loan falling through.
4. Don’t get married or file for divorce.
Along the same lines, it’s not a good idea to change your marital status during the closing process. Some types of loans take both parties — and their respective financial situations — into account. Do yourself a favor and wait the few weeks it takes to close.
5. Don’t switch banks or move money around in your accounts.
Your lending company will comb through bank records for the past three months. Once they verify the money is there and everything looks correct, plan to keep funds within their specific accounts. If you move them, the process will start all over again, costing you precious time.
6. Don’t open or close lines of credit.
Your approval to close hinges on a debt ratio that’s personalized to both your income and money you owe. Opening even a store credit card can throw off that ratio. On the other hand, don’t pay off any debt that your lender doesn’t authorize. Although it sounds smart, any major financial decisions can create repercussions that could cost you your loan.
7. Don’t make large deposits.
Generally, mortgage lenders check bank statements at the beginning of the loan process and again just before you close. The lender must verify any larger-than-normal deposits. If friends or family are gifting you funds, make sure you specify that in advance. Otherwise, you have to prove the source of your deposit, which can be a huge hassle.
Let’s face it — the closing process probably won’t be the most fun thing you ever do. But with these seven tips, you’ll be able to avoid careless mistakes and save yourself time and frustration.
Think Beyond The Closing Process
Hiring a reputable moving company like Ameritex is one of the smartest choices you can make. We strive to provide you and your family with the stress-free moving experience you deserve. For the ultimate in moving luxury, read about our full-service moves. Let us handle your Houston move, and you can focus on the closing process.