WHAT NOT TO DO BEFORE CLOSING2016-05-13 08:58:54 Posted By Jila Rezai
Now that you have found the right home to buy and the mortgage is all approved and ready to go, there are some things that you don't want to do before your home purchase closes as it may affect your borrowing power and jeopardize your mortgage approval.Don't move money around.
When a lender approves your mortgage, they are concerned about the source of funds for your down payment and closing costs. Usually, the lender will require bank/investment statements showing where the funds are coming from so at this time, it's much easier to leave all of the funds in one spot rather than moving it all around.
Talk to the lender before you change jobs. For most people, changing employers will not really affect your ability to qualify for a mortgage loan, especially if you are going to be earning more money. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application. Talk to your Mortgage Broker before making any changes.
Don't go shopping! As your closing date nears, it is tempting to get so excited about your new home that you want to go shopping! Now is not the time to make any large purchases using credit (credit cards or lines of credit) The lender has approved your mortgage application without the additional debt and increasing your debt at this time may be problematic for your mortgage approval.
Don't buy a car! You would be very disappointed if you got all the way through the offer/counter offer phase only to have your lender decline the mortgage application saying, "if only you didn't have this car payment..." Even if you feel you can afford the car payment, mortgage companies approve your mortgage based on their guidelines, not yours! Make sure you double-check with your Mortgage Broker in regards to your borrowing power. Don't buy the car - Buy the house first!