Your offer was accepted (yay! In this crazy market!), the inspection went great, and you’ve set a closing date. This is super exciting and you are extremely close to the finish line, but remember, you aren’t in the clear until you’ve signed all the paperwork. Here are 4 closing mistakes that are easy to avoid…
1. Don’t open new credit cards (or new loans!)
Buying a new home brings the urge to buy new furniture, new dishes, and a new towel set to match your new bathroom. Resist the urge to open any credit cards to buy these things and instead stick to pinning ideas on your Pinterest board (at least until after the closing!) While you’re at it, avoid taking out any new loans. A new loan impacts your debt to income ratio, which can delay your approval to close.
TIP: If you’re short on cash but need a face-lift in your furniture, consider selling your old furniture and using the profit to buy new stuff. Do NOT buy any new furniture or major items for your new home- especially if you are financing furniture!
2. Don’t fall off the face of the earth
We’re talking to you….Mr. Never Answer Your Phone.
Your lender and realtor will need to contact you frequently before the closing (and we might, too!) Make sure you’re available to answer any last minute questions by checking your email and phone calls frequently.
3. Don’t quit your job
A career change is great, after the closing date. Lender’s love stability (in fact, most require at least 2 years of employment history) and a big change in your profession can make them uneasy about giving you a loan. We have seen many-a-closing fall apart because someone quits their job during underwriting.
4. Pay your bills on time
You’ve always been timely in paying your bills, but with the hustle and bustle of moving, you’ve been forgetting. Too many late payments can negatively impact your credit score, which can affect your interest rates and sometimes even your qualification. Your lender will pull your credit right before closing, so make sure it hasn’t changed since you were pre-approved!
Did you know closing a credit card or loan can actually ding your score? Wait to close out any cards or loans until after closing, too.
TIP: Mint allows you to set reminders for any bills that you have AND it can keep track of your spending. They even have an app.
We are so excited to help you cross the finish line of buying your home. If you have any questions throughout the buying/ selling process, don’t hesitate to contact us, your lender, or your Realtor. We are all here to help and excited to celebrate with you on closing day!