In the period of time between making an offer on a home and closing on a home, there are some essential things to avoid. Any significant financial chances can impact the closing timing, purchase price and overall transaction.
Don’t start a new job
If you’re considering a new job around the same time as purchasing a new home, consider negotiating the start date to after you close. The length of time with your current employer can impact the timing and rate of your mortgage loan, so being able to negotiate the start date after the closing can ensure you receive the best interest rate.
Don’t close any accounts
Keeping all accounts open is crucial during pre-approval to your closing. Even if you no longer use the accounts, keeping them open will help keep your credit in good standing.
Don’t open any new accounts
Just as you shouldn’t close any accounts, you shouldn’t open any new accounts before closing on a home either. The accounts you had that you were pre-approved with should be the only accounts you have until post-closing.
Don’t miss any payments or make late payments
During your homebuying process, you likely have many long to-do lists. Ensure on-time payments are at the top of your lists. Even one late payment can impact your mortgage qualification.
Don’t make any large purchases
When you’re buying a new home, you’ll likely be buying new furniture, as well. As tempting as it may be to purchase your new furniture pieces, it’s best to hold on to these purchases until after the closing. Large purchases, such as TV’s, sofas and more, can impact your mortgage qualification. Selecting the items in advance will enable you to purchase them quickly as soon as you walk away from the closing table.
Don’t skip a home inspection
If you’re looking to speed up the purchase process of a new home, skipping a home inspection is not the step to skip. Skipping the inspection can uncover major issues after you own the house, which you will be responsible for fixing. Addressing any problems with the seller before closing will protect you from costly or time-consuming issues.
Don’t co-sign a loan
Whether you have a child, friend, or relative who needs a co-signer on a loan, you should not be that person. Regardless of how much you trust the person who asked you to co-sign, this will impact your mortgage. If you feel comfortable co-signing a loan, tell them it must be after you close on the property.
If you’re awaiting closing on your new home, avoiding any actions that impact your financial standing is essential. Unexpected changes to your financial situation can alter the buying process, potentially causing you to lose your ideal home.
