You have spent many days and nights looking for homes and have finally found the home you want. The offer has been submitted and accepted.
Now is the time to schedule the home inspection and secure your financing and homeowners insurance. There are many things that need to be done, but in this blog, I am going to tell you what NOT to do before you actually close on the purchase of your new home.
Do Not Make Any Large Purchases
What this means is do not go out and start purchasing the new appliances, new furniture, new carpet or that grand vacation that you want. Unless you have the cash to do it, racking up large balances on the credit cards can have an adverse effect on your credit report and credit score. You are so close to closing on your home; you do not want to put that in jeopardy.
Do Not Move Money Around
The mortgage broker will want to see bank statements showing that the down payment and reserves have been in your account for at least 60 days. If you start moving money around, it could be perceived that are scrambling for funds and the mortgage brokers/lender could interpret that you cannot afford the mortgage payment.
Do Not Change Jobs
If you have a potential job that is going to pay more, if you can, wait until after you close on the house. You want to ensure the lender that you are stable in your job as well as stable with your income. If you must leave, make sure to inform your mortgage broker so that they can relay the information to the mortgage underwriter. It is better to be proactive than reactive.
Do Not Change Banks
If you have been a customer of a certain bank for years, let it stay that way until after you close on the purchase of your home. Again, you want the mortgage broker and underwriter to see stability in your personal life as well as your financial life.