5 Things To Do Before Your Closing Is Finalized To Ensure It Goes Through
Once you find a home that you want to purchase and sign the contract, you have to wait for the closing. Even though you signed the contract, you still need to be careful with your actions in the days leading up to your closing. The wrong activity can ruin your chances of closing on a home.
1. Keep Your Job
First, you shouldn't put in the notice and change your job right before you close on a home. Losing a job, or changing jobs, can be a red flag to the mortgage offer overseeing your loan and can result in it getting your closing denied or delayed. This is true even if you are getting a promotion or switching to a job with higher pay. If possible, wait to change positions until after your home closes.
2. Make Payments on Time
Second, when you are closing on a home, you don't want to make a late payment. This is when you need to double-check and ensure that you are making all of your debt payments on time. You don't want to incur a late payment on your credit card, loans, or vehicle note, as doing so right when you are trying to get approved for a significant home loan can sink your chances of getting that loan.
3. Avoid Taking on New Debt
Third, when you purchase a new home, you may want to head out to your local home improvement and pick up some things to fix up your home, or head to the furniture store to pick out some new pieces for your new space. That is fine if you are paying with cash. What you shouldn't do is open a new credit card or take out a loan for those types of purchases before your loan is closed. Even if the debt is only a couple of thousands of dollars, that can result in a new hard inquiry on your credit report, and that can damage your ability to get a loan.
4. Keep Those Accounts Open
Finally, you should not try to clean things up by closing down accounts that you have not used for a while. Closing those accounts will make it look like you have less available credit, which can harm your credit score and the closing of your loan. It is better to keep those accounts open and paid off, even if you are not using them.
If you have other questions about what you should do to avoid ruining the closing on your home, talk to your real estate agent. They should be able to provide you with the necessary insight to ensure you get the home you want and that you don't damage the home buying process.