8 Things You Must Never Do Before Closing on a House
Buying a house is stressful and often takes time, but your actions during this period are crucial. Here are eight things you should avoid before closing on a home:
1. Apply for New Credit
Don’t take on new debt. Avoid applying for new credit cards or loans. These can wait until after you’ve closed on your house.
2. Fall Behind on Payments
Consistency is key. Don’t miss or skip payments on any bills or debts. Even one missed payment can hurt your credit score and jeopardize your loan.
3. Get Divorced
If possible, delay filing for divorce until after closing. Major life changes can complicate the loan process and delay or prevent closing.
4. Co-Sign Loans
Avoid co-signing for anyone else’s loans. This new debt will be counted against you and can affect your loan approval.
5. Quit Your Job
Maintain your employment. Lenders require consistent income, and changing jobs can disrupt your loan approval.
6. Ignore Your Lender
Keep communication open with your lender. Inform them of any major changes in your life to avoid surprises.
7. Make Large Cash Deposits
Avoid large cash deposits unless you can verify their source. Large deposits need to be documented and can cause delays.
8. Make Assumptions
Don’t assume anything. Always ask questions if you’re unsure. There are no dumb questions in real estate.
What You Should Do
Communicate: Keep in touch with your real estate agent and lender.
Stay Informed: Learn about the closing process and ask for clarification when needed.
Keep Finances Stable: Avoid new debt and major changes to your finances.
Handle Gift Funds Properly: Ensure any gift funds are documented and sent directly to closing.
By avoiding these common pitfalls and staying proactive, you can ensure a smoother closing process.