Friday, November 01, 2019 / by Pamela Glende
You may just of found your dream home. Your offer was accepted. Your home inspection went well and now you are just waiting to go through the appraisal and close.
You are excited and now thinking about all your decorating and the things you want to do to the home. Perhaps it’s new appliances or furnishings or a new car you want to put in that garage.
Just a few more days and that home is yours. Sadly, the home is never yours until you have the keys in your hands. If you are not careful you could jeopardy or lose the home all together.
Here are 5 things you will want to avoid until your home actually closes and the keys are in your hands.
1. Big ticket purchases
You were approved for your loan on your credit score and your current financial situation. Big ticket purchases like cars, appliances and furniture can change that financial situation. Your lender will pull your credit again just before closing so your debt to income ratio may not work anymore and your loan could be denied.
2. Employment Changes
Losing your job, quitting or switching jobs can impact your viability as a borrower. You need to have stable employment, so you are a good investment to your lender. Don’t make any employment changes until you are in your new home.
3. Late Payments
You don’t want to mess up your credit score so make sure you are on time with all of your payments. I’m talking about credit cards, car loans or any debts that you are paying on. This includes student loans. If your overwhelmed and worried you might forget a payment set up auto payments through your bank so nothing will be late.
4. New lines of credit
Your credit score needs to be maintained and stable during the closing process. Don’t’ open any new lines of credit such as a new car loan or a new credit card. This could make your FICO Score drop and it will send a red flag to your lender. Wait until you have closed on your new home.
5. Missing documents or Incorrect documents
Make sure you quickly submit any needed documents to your lender. Delays in getting the needed documents to your lender can cause delays in closing. Missing documents can stop the loan all together. Errors on documents can also cause delays. You want to keep the ball rolling at all times.
When buying a home keep all this advise in mind, stay on track and avoid making these mistakes. You won’t be disappointed.