When you’re going through the process of buying a home, you become a complete open book. Sometimes it can feel like lenders are asking you for everything but the kitchen sink! 

The closing process of buying a home is a very important stage, and there are a few things you should be careful NOT to do during this time:

AVOID CHANGING YOUR MARITAL STATUS:

How you hold title is affected by your marital status. Make both your lender and title company aware if there will be any changes in your marital status. This is important so they can be sure to prepare your documents correctly. 

AVOID CHANGING JOBS:

It’s definitely a bad idea to change jobs during this time, since this can result in your loan being denied. Don’t assume you’re “safe” just because you’ve already been approved—the lender may call your employer to re-verify your employment! 

AVOID SWITCHING BANKS OR MOVING YOUR MONEY TO ANOTHER INSTITUTION:

After your funds have been verified, the money needs to remain in the same place until your closing process has been completed. 

AVOID MAKING LARGE DEPOSITS:

Don’t make any unusual deposits (especially cash!) into your bank accounts or move money around different accounts. 

AVOID PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT:

Leave your accounts as they are until your escrow closes… unless your loan officer advises you to pay off certain bills. 

AVOID MAKING ANY LARGE PURCHASES:

It’s important to maintain your credit score during this time, and that means no major purchases! A large purchase that could require withdrawal from your verified funds or increase your debt might prevent you from qualifying for a loan! A lender might even check your credit last minute, so it’s important to wait until after everything is settled. 

AVOID CO-SIGNING FOR ANYTHING:

Even if you co-sign on a loan that doesn’t require you to ever make a payment… don’t do this when you’re in the process of buying your home! Lenders will consider this new debt, and it will impact your debt-to-income ratio.

AVOID MISSING A PAYMENT:

Missing even one bill or payment during this time can have a negative impact on your credit rating, and it could lower your credit score right away. Keep close track of bills and due dates, and set up automatic bill payments through your bank whenever possible to avoid this scenario.