4 Ways to Ruin Your Closing

When buying a home, it is important to realize that home buying is a process and you have to be on top of your game from the start of the process until the end. If you are hoping to purchase a home, keep in mind these common ways that people can ruin their closing and stop the closing altogether.

  1. Buying a Car – If you plan to buy a new car, wait until after you have closed on your house.  A large purchase like a car on credit (if you are paying cash, well, that is another thing), you could stop the deal. A lender could decide not to lend you the mortgage if they decide you now have overextended your finances. Or, at the very least, the lender may increase your interest rate due to the change in your credit score.
  2. Job Changing – During the buying process is not the time to change employment. A change in employment is a red flag to many lenders and can ruin the deal before you know it.  Conventional loans typically look at employment longevity so job changing is not recommended when trying to purchase a home.
  3. Closing Costs – Many buyers forget to plan for closing costs. Having money set aside for any potential closing costs is very important. Make certain you discuss with your realtor and/or your lender the expected closing costs you may be responsible for. Ensure you have this amount in your checking account and ready to go as this can be checked by your lender before closing.
  4. New Credit – It is also important not to open any new credit accounts during the home buying process.  Your credit score is based on your income and your open and available credit. Increasing your available credit can lower your credit score and affect your mortgage terms or possibly cause your loan to not close.

Buying a home is an exciting time to many. Be sure that you are ready for the closing so that you are not blind-sided by any surprises that could prevent you from closing on your dream home.