What to Avoid Doing Before Closing Day

Pay Attention to Your Spending Before Closing Day When Buying a Home

Do you know how important your financial decisions are between pre-approval, making an offer, and closing? Before closing day when buying a home, those small decisions you didn’t even consider could significantly impact the mortgage company’s final decision.

Remaining fiscally careful is imperative to a smooth closing day. No one wants to mess up the purchase of a house unknowingly. That is why it is crucial for you to read this article in full before closing day.

Stay in Your Current Place of Employment

Mortgage lenders look at employment history, longevity, and stability to see if you qualify for their funding. Changing jobs in the middle of proceedings may raise a flag, causing the lender to believe your income is unstable. No one wants that. If you feel you need to change jobs, wait until after closing day to make the change.

Keep With The Same Bank

If your bank does not provide all you want in a banking institution, it may be time for a change. But certainly, do not take that leap until after the closing day. Your banking history goes a long way to showing your stability, and final approval may depend on it.

Remain Current with Payments

This would seem like an obvious thing to do, but there is one problem. We get so busy packing, planning, dreaming, and making decisions around the move, that we may inadvertently miss a necessary payment.

It is good to ask your realtor or mortgage broker what your last payment date will be, and likewise, the first for the new place.

Similarly, the lender will check car payments, loan accounts, and credit cards before closing day. Be sure you are current with all payments, not just your home payments.

Avoid Large Purchases

This is one of the most common mistakes potential homeowners make. You see, your pre-approval depends on your current loans and the status of those accounts. If you purchase a new vehicle during the wait for the closing day, you will not appear the same on paper.

So, even if that once in a lifetime chance comes along to get the vacation of your dreams comes along, You’ll regret the decision when closing day comes.

We know you have been waiting to get a boat, and here it is… the perfect boat for the ideal price. The answer again is no. You would be best to wait and miss out on that deal, so you don’t miss out on the home of your dreams.

Do you need all new appliances and furniture for the new home? You may want to take a step back. Locate the items you want and make a note of them. Then go and get them after the close. Again, the way you look on paper is vital to the home closing.

Stay Away From Credit Inquiries

When you innocently apply for credit, the company you are purchasing from will make a credit inquiry. But when the mortgage company sees the queries, it looks as if you are ready to acquire more debt. That makes them worry they won’t get their payments if you overextend.

Even a simple retail clothing shop or a furniture store credit card will raise a red flag to the mortgage lender.

The Best Advice Before Closing Day

Honestly, the best advice is to stay fiscally the same from the time of pre-approval to the closing day. Then you can go out and get that furniture or buy a boat, whatever your heart’s desire. Just do yourself a favor and wait until after closing day. You will be thankful you did!