Make Sure to Avoid These Before Closing On a Home

You’re almost there! The inspections are behind you, closing is on the calendar, and you can practically see those new keys in your hand. This is also exactly when you don’t want an innocent financial decision creating one more hurdle. Your lender may continue verifying information right up to closing, so for just a little longer, keep your finances boring. New sofa? Soon. New truck? Maybe not today. New credit card to save 20% on the sofa? Definitely call your lender first.

AVOID UNNECESSARY CHANGES TO YOUR CREDIT
There will be plenty of time to shop for the new house after it actually becomes your house. Until then, remember that your lender approved your mortgage based partly on the credit and debt you already had. New activity can change that picture.

For the home stretch, watch these four things:

• Opening a new credit account:
  That “no payments for 12 months” furniture offer may still be there after closing. Financing furniture, appliances, a vehicle, or anything else can create a new debt your lender may have to consider. Ask before applying.
• Running up existing balances:
  Buying everything for the new house before you have the keys is exciting. Explaining a suddenly larger credit-card balance to your lender is less exciting. If a major purchase can wait, give it a few more days.
• Closing or changing existing accounts:
  This is not the moment for a credit makeover. Even changes that seem harmless can affect your credit profile. Keep things simple unless your lender tells you otherwise.
• Starting a credit dispute or last-minute correction:
  Wrong information should be corrected, but timing matters. Before launching a dispute while your loan is being finalized, call the lender and find out the best way to handle it.

DON’T CHANGE YOUR EMPLOYMENT WITHOUT TALKING TO YOUR LENDER
New house. New job. New life. Sounds fantastic—just maybe not all in the same week.

A job change doesn’t automatically ruin a mortgage approval, but a different employer, compensation structure, reduction in hours, move from salary to commission, switch to self-employment, or leave of absence can change the information your lender used to qualify you.

If the opportunity of a lifetime appears two days before closing, you don’t necessarily have to turn it down. You do need to call your lender before making assumptions about how the change will affect your loan. If the job change can comfortably wait, however, waiting may keep your closing a whole lot simpler.

BE CAREFUL WITH LARGE OR UNUSUAL BANKING ACTIVITY
Your own money is still your own money. You can deposit it. You can move it. But while your mortgage is being finalized, your lender may need to document where funds came from and verify the money you’ll use at closing.

So if you’re transferring a substantial amount, receiving gift funds, selling an asset, making a large deposit, or doing something else that makes your bank statement suddenly look very different, ask what documentation you should keep.

And protect the money you need for closing. This is not the week for an accidental spending spree or a checking account that keeps bouncing below zero. Keep the path from your money to the closing table nice and easy to follow.

DON’T MAKE MAJOR FINANCIAL CHANGES WITHOUT CALLING YOUR LENDER
Here’s the easiest rule in the entire article: if you find yourself wondering, “Could this affect my mortgage?”—make the call.

You don’t have to become an underwriter for the final few days of your home purchase. New debt, income changes, big transactions, or different closing funds may be perfectly workable. Let your lender tell you what matters and what documentation is needed.

KEEP YOUR CLOSING FUNDS READY
Closing is getting real now. Keep the money you’ll need accessible, review your Closing Disclosure carefully, and ask questions if any of the final numbers surprise you.

And please don’t let excitement make you rush when it’s time to wire money. Criminals target real estate transactions with convincing fake emails and last-minute wiring changes. Independently verify wiring instructions with the title, escrow, closing, or settlement company using a trusted phone number before you send a dollar.

UNTIL YOU HAVE THE KEYS…
Relax. Buy groceries. Fill the gas tank. Have dinner. Your mortgage is not going to collapse because you ordered dessert.

Just save the big financial moves for later—or run them by your lender first.

If anything comes up before closing, call me. If I don’t have the answer, I’ll help you get it from the lender or closing professional who does.

You’ve come too far to create unnecessary drama in the final few days. Keep things steady, get to the closing table, grab those keys—and then you can start shopping for the sofa.