Make Sure to Avoid These Before Closing On a Home
You’re almost home. After the searching, the offer, the paperwork, the inspection, and all the decisions in between, closing is finally getting close. It’s natural to start thinking ahead—buying furniture, making plans, maybe even making a few changes in your life now that this big one is nearly complete. Go ahead and be excited. Just remember that until the loan actually closes, your lender may still be verifying the financial information that got you here. For a little while longer, keeping things steady can help protect everything you’ve worked toward.
AVOID UNNECESSARY CHANGES TO YOUR CREDIT
One of the sweetest parts of buying a home is imagining yourself living there. You start noticing sofas, dining tables, appliances, maybe even the car that would look awfully nice in that new garage.
Enjoy the dreaming. Just be careful about financing the dream before the house is officially yours.
Your lender may review new credit activity or debt before closing, so these are a few things worth handling carefully:
- Opening a new credit account:
Financing furniture, appliances, a vehicle, or another purchase may add a monthly obligation that needs to be considered. Before you apply, ask your lender whether it could affect your loan. - Running up existing balances:
The empty rooms can wait a little longer. A large purchase on an existing credit card may increase your balance and monthly payment. If you can wait until after closing, you may save yourself an unnecessary complication. - Closing or changing existing accounts:
Even changes made with good intentions can affect your credit profile. Unless there’s a reason something needs to change now, this is generally a good time to leave established accounts alone. - Starting a credit dispute or last-minute correction:
If you find an error, don’t ignore it—but don’t feel you have to solve it alone either. Tell your lender what you found and ask how to handle the correction without creating an unexpected delay.
DON’T CHANGE YOUR EMPLOYMENT WITHOUT TALKING TO YOUR LENDER
Life doesn’t always coordinate itself around a closing date. Sometimes a new job opportunity arrives at exactly the same time you’re buying a house. Sometimes an employer makes the change for you.
If that happens, don’t panic—and don’t hide it.
A different employer, new compensation structure, reduced hours, move from salary to commission, switch to self-employment, leave of absence, or other income change may require additional documentation. It may be perfectly manageable, or it may affect qualification. Your lender needs the opportunity to figure that out.
If the change can wait, waiting may make life easier. If it can’t, make the call. There’s almost always more room to solve a problem when everyone knows about it early.
BE CAREFUL WITH LARGE OR UNUSUAL BANKING ACTIVITY
The money you’ve saved for your home represents a lot more than numbers on a bank statement. It may be years of saving, sacrifices you made along the way, or help from someone who wanted to be part of this moment with you.
Your lender may need to document where some of those funds came from and verify that enough money remains available for closing. If you receive a gift, sell an asset, transfer substantial funds between accounts, or make a large deposit, keep good records and ask what documentation will be needed.
And be careful not to spend or move money you’ll need at closing without checking first. A clear paper trail can make those last financial verifications much easier.
DON’T MAKE MAJOR FINANCIAL CHANGES WITHOUT CALLING YOUR LENDER
You aren’t expected to know which financial changes matter to an underwriter. That’s not your job.
If your income changes, you take on new debt, money moves unexpectedly, or something else happens that makes you wonder whether you should mention it, mention it.
Asking a question early is much easier than trying to fix a surprise at the closing table.
KEEP YOUR CLOSING FUNDS READY
As the big day approaches, keep your closing funds accessible and review your Closing Disclosure carefully. If something in the final numbers doesn’t look familiar or doesn’t make sense, ask about it. You deserve to understand what you’re signing and where your money is going.
And please be especially careful with wiring instructions. Criminals know how emotional and hectic the days before closing can be, and they use that urgency to make fraudulent messages seem legitimate. Before wiring money, independently verify the instructions with the title, escrow, closing, or settlement company using a phone number you already trust.
UNTIL YOU HAVE THE KEYS…
Keep living your life. Buy groceries. Pay your bills. Go to work. Have dinner with your family. You don’t need to spend these last few days afraid that one ordinary decision will make your new home disappear.
Just give the big financial decisions a little more patience. If something needs to change, call your lender first. And if something happens that you didn’t expect, tell us. There are people around you whose job is to help get you through this.
If you have questions, reach out to me. Even when the answer belongs to the lender or closing professional, I can help you find it.
You’ve spent a long time getting to this door. Let’s protect these last few steps so that the next time you walk through it, the keys are in your hand and the home is finally yours.