4 Things to Avoid when Closing on a Home

4 Things to Avoid when Closing on a Home

Your offer on a house has been accepted but there is still a lot to get done. In-between the final signature and you moving in you will have to navigate through the closing process – along with the costs associated with them. These costs can include deposit, title search, home inspection, lending costs, and the final loan costs. When being approved for a mortgage the lender not only looks at your ability to pay back the loan but also looks at all your other loan obligations. The following are four things you should avoid during the closing time.
 
Go on a shopping spree
While it is exciting to start imaging yourself in your new home and searching for all the new items you would like to make it your new home, don’t rush out and buy new furniture.
Using credit at this time can complicate your credit position. Your lender can revisit your credit report before completion on your home and if there are new debts they have the right to withhold financing.
The same goes for purchasing a vehicle, now is not the time to add to your debt list.
After you have been approved for a mortgage any additional credit debt taken on will cause delay in your financing approval or even ruin it. You will then be frantically searching for a new lender, causing stress for all involved.
 
Quitting your job
You have been offered a great new job with higher pay; this is great for your financial situation, right? Yes and no. It looks good for making your mortgage, taxes, and home insurance payments but not so good for your credit. Taking a new job usually comes with a probation period, which will affect your credit. Also, if it is a temporary or casual positing this can cause issues with your lender.
 
Start Booking Renovation Projects
You have lots of ideas, and therefore projects, that you would like to make to your new home. Getting a contractor can take some time and you want to get ahead on it. Holding off on renovations, is recommended, until you have lived in your home for one year. You will get to know your new home better and then you can decide where better to spend your money.
If your new home needs a major renovation before it can be lived in then get started as soon as possible.
 
Getting overwhelmed
There are many moving parts during the closing process, and being patient and calm can ultimately make the process more enjoyable. The steps towards a successful transition should be taken slowly and any large financial decisions should be ran by your REALTOR® who can help make sure it does not affect your ability to close on your new home.