What Not to do Before Closing on Your Home

You have found your perfect home and secured the necessary financing, but before you pop the champagne and start celebrating, there are a few things to keep in mind.

Contract ready for signature

There are several things that can postpone a closing or drive your interest rates higher. When you apply for a mortgage, the first credit check your lender runs won’t be the last.  Another credit check is performed just before you close.  So here are some things that you can do to prevent any negative changes in your credit score.

  1.  Change in job status:  Banks want stability, and changing jobs at an important time in your life can make them think twice about offering you a mortgage.  Going from employee to contractor, or salary to commission will also raise a red flag.  If you’re moving to a better job with a higher salary, this change may delay your closing as well.
  2. Making late payments of any kind:  One late payment will not only harm your score, but it can also make you ineligible for a loan from most lenders for up to a year.
  3. Having too many unnecessary credit inquiries:  Every time a lender makes a credit inquiry, when they pull your credit report, it affects your score.  Those no interest, no payment store credit cards are tempting, but they are horrible cards in the long run.
  4. Taking on debt:  Now is not the time to by that new car you have been wanting.  Any debt that you didn’t have prior to your application can change the before and after picture on your credit report.  Wait until after your loan is completed before you go shopping for any major purchases.
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