5 Mistakes to Avoid Before Closing

on Jun 11, 2024
Back to blog home

Before closing on a home, it's important to have a clear understanding of the closing process and avoid mistakes that could derail your timeline. Closing involves the final steps of the home buying journey where the legal transfer of ownership takes place. It includes activities such as reviewing and signing documents and completing the necessary financial transactions. Below are mistakes to avoid to ensure you have a smooth experience into homeownership!

Common Mistakes to Avoid

1. Applying for a Credit Card or Loan

One common mistake is making major financial changes before closing. This includes taking on new debt, opening new credit accounts, or making large purchases using credit. Do not co-sign anyone else's loan, either. Your loan preapproval encompasses your current financial situation, so any changes to your finances can potentially affect your loan approval. 

2. Making Major Purchases

Avoid purchasing a new vehicle, furniture, or other large purchases until after you have closed on your home. In addition, do not transfer money between accounts without complete, itemized documentation from your bank. These actions can negatively impact your credit score and debt-to-income ratio, potentially affecting your loan approval. Small, regular purchases are okay and will not affect your loan. We recommend proceeding with business as usual.

3. Forgetting to Pay Bills

Preparing to move can consume your time and attention, but don't let bills slip by. Missing payments or failing to pay bills on time is another way to harm your credit. Mark due dates on your calendar so you can avoid this simple mistake, or switch your bills to autopay.

4. Changing Jobs

Additionally, avoid making any changes to your employment without consulting your lender first. This includes changing jobs or quitting your current job. These changes may raise red flags and could potentially delay or even cancel your loan.

5. Overly Trusting

Lastly, be cautious about sharing sensitive financial information or personal details with anyone other than your trusted real estate professionals. Protect your identity and avoid falling victim to scams or fraudulent activities. Wire fraud is a common scam, and a healthy dose of skepticism can save you from falling victim. Always call your lender or agent to receive verbal confirmation if you receive an email asking to wire money electronically.

With clear communication between you and your lender, your team of professionals will guide you in a smooth transition to homeownership. For more expert advice and guidance, reach out to trusted lenders who can provide valuable insights and support. Stay informed, stay vigilant, and enjoy the exciting journey of becoming a homeowner!

------------------------------------------------------------------------------------------------------

Featured Expert

Ashleigh Fletcher is a Sr Loan Officer with CMG Home Loans and has been in the mortgage industry for over 20 years. Ashleigh is an Omega Builders preferred lender and works closely with our home buyers to ensure a smooth closing from start to finish.

NMLS# 175193


This article is provided for informational purposes only. Omega does not warrant or guarantee the accuracy of the information provided and makes no representations associated with the use of this information as it is not intended to constitute financial, legal, tax, or mortgage lending advice. Omega Builders encourages you to seek the advice of professionals in making any determination regarding, financial, legal, tax, or mortgage decisions as only an informed professional can appropriately advise you based upon the circumstances unique to your situation.

 


Previous Post

Stay up to date

Get the latest articles from the omega team