What Not to Do Before New House Closing

April 17 Blog

You’ve made an offer to buy a house. The seller has accepted your offer. You’ve given your mortgage lender the purchase agreement. The closing date has been set. What’s next? Many buyers assume that they are “home free,” once the seller accepts their offer, but not always. There are things that can go wrong before closing day. The pre-approval is not a commitment or guarantee. You’ve been conditionally qualified for a loan, but you need to stay qualified all the way to closing. The less your financial situation changes, the better. What should you avoid doing during this timeframe to ensure a surprise free closing?

  • Don’t spend a lot of money. Implement a self-imposed “spending freeze” as much as possible. It’s best to avoid any major purchases during this period. Your lender might have certain cash-reserve requirements for the loan. These purchases will change your debt ratio, which could cause problems with your final approval.
  • Don’t switch jobs before closing. A new job usually brings a change in income. If your income goes down, it will alter your debt-to-income ratio in a bad way. A change in employment will also require a lot of paperwork changes. Some lenders will verify your employment again, just before closing day. Mortgage lenders hate surprises.
  • Don’t Go It Alone. If you’re working with an agent, it’s the agent’s duty to track many of the day to day details that involve the lender, the seller, or the seller’s agent, and they will schedule a final walkthrough before closing.
  • Don’t forget to bring the following to the closing:
    • Funds For Closing
    • Homeowner’s Insurance Binder
    • Your state issued driver’s licensewith picture or other picture identification.
    • Your Smile.

My years of experience and resources could become your biggest asset during this process. Call me and let me become your agent during the entire journey of new home ownership. You will never feel alone or lost with me only a phone call, or email away. Together we can get to closing day, knowing we are prepared. Ensuring a smooth closing can be summed up with this phase – status quo. Maintaining the status quo as much as possible, between the pre-approval and the final approval, equals a happy ending. Contact me, Jeff Wu, with any questions. I am here to help. You can contact me at 571-248-1110 or email me at [email protected]. Visit my website at AgentKnowsHomes.com.

Happy closing!

Jeff Wu

[email protected]