When buying a home, there are several things to know to help you get ready for closing day. The main rule of thumb is do NOT do things that will change or affect your "financial picture".
Keep your job.
Changes to your employment (changing jobs, becoming self-employed or quitting) could prevent you from closing as income needs to be verified and pay stubs are required.
Avoid accumulating additional debt.
Applying for new credit cards or making major purchases can negatively impact your debt ratios and may prevent you from closing your loan. Try to keep balances below 30% of the available limit at all times during your loan process and save large purchases for after the close of your loan. Don't co-sign on anybody else's loan as this affects your credit too!
Maintain a stable credit picture.
Closing accounts, paying off collection, consolidating cards or making late payments can all adversely affect your credit score.
Maintain your bank accounts.
As part of the approval process, bank accounts need to be verified and changing or closing accounts could cause issues at close. Unusual transactions or deposits can also cause red flags. Don't consolidate accounts or move any money around.
Stay in touch with your Mortgage Person.
If you have questions about actions that may affect your financial picture during the mortgage process, call your lender right away and avoid mistakes that may cause problems with closing.
Want more insight? Have a specific question? Contact your lender and ask them to talk you through it.
Need a lender? Contact me for qualified referrals!
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