Don’t do These Things When You’re Closing on a Home

3 minutes read

You might think since you have the ‘clear to close’ from your lender that you are free to do anything you want with your finances before your home closing. Don’t make that mistake, though. There are ways that you can ruin your chances of closing on your loan if you aren’t careful.

Get Matched with a Lender, Click Here.

DON’T CHANGE JOBS

Even if you get the best job offer in the world before you close on your loan, don’t take it. If you do take it, make sure that your start date is after you close on the loan. Your lender will likely conduct one more verification of employment to make sure that you still work at the same place.

If you do change jobs, it can change the landscape of your loan. The lender would have to start the process all over again with your new income to make sure you still qualify for the loan. Because you started a new job, the lender may need to wait until you are there for at least six to 12 months to make sure that the job is stable and reliable.

The best thing you can do before you close on a loan is keep everything the same. This means your job, income, and your credit. It will only be a matter of a month or two before you can change things up, but changing anything during the loan process could leave you without the loan that you want.

DON’T OPEN ANY NEW CREDIT ACCOUNTS

No matter how many applications or ‘pre-approvals’ you receive in the mail, don’t open a new account. Don’t even inquire about the account. If there are any new inquiries on your credit report, it sends up a red flag to your new lender. They may think that you have a new credit line out there somewhere. They will want to know the details of the account to determine if it fits within your debt ratio or if you just ruined your chances of closing on your loan.

DON’T RACK UP YOUR CREDIT CARD DEBT

Even after your lender gives you the ‘all clear’ on your purchase loan, you still have to wait before you buy anything. So hold off on those big furniture purchases and don’t buy new appliances. It can all wait until you close on your loan.

Click to See the Latest Mortgage Rates.

If you rack up credit card debt, it can lower your credit score and damage your debt-to-income ratio. Your lender will likely pull your credit one more time right before you close on your loan. If they see that you suddenly have more debt than you had before, it may force the lender to go back to the drawing board to see if you still qualify.

DON’T CLOSE ANY CREDIT CARD ACCOUNTS

It may seem like a good move to close your old credit card accounts. After all, why keep them open? Aren’t they hurting your credit? What you might not know is that your old credit cards could actually be helping your credit. A small part of your credit score is comprised of the average age of your accounts. If you close your old accounts, you make your average account age younger, which can reflect negatively on your credit score.

Rather than closing your accounts, just leave them untouched. You don’t need to use them, but you should leave them open.

Facebook Twitter LinkedIn Telegram Whatsapp Pocket

Related Posts:

Your closing day is finally almost here! You are within days of receiving the keys to your new home in your hand. Before you head out the door to go to your closing, though, you should know what you need to bring. The more prepared you are, the easier the process will be and the quicker you can call yourself an official homeowner. Compare Offers from Several Mortgage Lenders. YOU’LL NEED TIME First, let’s t...
So after months of preparation, building your credit, and prepping your paperwork, working through the labyrinth of finding a home, getting pre-approval for your financing, you are finally on your way to closing. What a relief, right? Not so fast. There are a few things you need to know and do first before the closing date. If things go right and you follow these sound advice, then you don’t have to worry ab...
You probably remember the stress of closing your home loan when you bought your home. If you are now thinking of refinancing, you’ll go through some of the same stress. While refinancing isn’t as hard as buying a home, you still have some hoops to jump through in order to get your loan. Looking for Current Mortgage Interest Rates? Click Here. Keep reading to learn the top tips for a smooth refinance clo...
The state of Pennsylvania offers first-time homebuyers special benefits to help them become homeowners. The assistance includes down payment assistance and closing cost assistance, making it more affordable for first-time homebuyers to own a home. Compare Offers from Several Mortgage Lenders. KEYSTONE ADVANTAGE ASSISTANCE LOAN PROGRAM If you need closing cost or down payment assistance, the Keystone Advantage A...
You hear that you have the option to get a “no closing cost” loan. You immediately, think “Sign me up!” Who wouldn’t want to save thousands of dollars on their refinance? But, before you do, there are some considerations you must make. While the name makes it seem like the loan does not cost you, in reality, it does. We show you how below. Get Matched with a Lender, Click Here. HOW LENDERS OFFER A “...
It’s a common myth surrounding the USDA loan that it takes ‘forever’ to get to the closing. It really doesn’t take too much longer than any other loan on the market. While there is one extra step USDA lenders have to take, if they do their job right, it won’t take very long. Compare Offers from Several Mortgage Lenders. WHAT’S DIFFERENT ABOUT USDA LOANS? Most loan programs go through the lender and ...