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When you are closing on your home, you need to make sure that you don’t make any drastic changes that could negatively impact the sale. Here are the top four things you should NEVER do when you are trying to buy.
- 1) Change jobs: What job you hold is one of the first things that folks look at when they are considering you in the buying process. A job change may result in your loan being denied, especially if you are taking a lower-paying position or if you are entirely changing industries. Just because you have already received a loan approval does not mean it can’t be removed. It is quite possible that the lender may call your employer AGAIN to re-verify before funding the loan.
- 2) Switch Banks or Move Your Money: The lender will take time to verify your funds, and if you change banks, the process has to start over again. If you are changing banks during the home buying process, it could also make you look irresponsible because they do not know the reason why you changed banks. After verification of funds, the money should remain in one spot until it is needed for purchase.
- 3) Pay off Existing Accounts (Unless your lender says so): You should leave your accounts as they are until your escrow closes because paying off one big account could actually result in you not being able to pay for the home, or you may not be qualified for the loan anymore. If your loan officer advises you to pay off specific bills to qualify for the loan, then you can certainly do that, but make sure that any big bills you want to pay are approved by the loan officer first.
- 4) Make any Large Purchases: This may seem quite obvious, but many people get excited about getting a new home, and then they decide they want to buy a new car, too. A major purchase that requires a withdrawal from your verified funds, resulting in a debt increase, can mean you won’t qualify for the loan. A lender may recheck your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
