Buying a home can be a wonderful exciting experience, especially after your offer on a home is accepted. Nothing is absolute, however, until escrow closes and you have ownership and possession of your new home. If you are financing the purchase with a loan, here are 6 things that you should not do until you take ownership of the property:
- Don’t change jobs, become self employed or quit your job. Your lender will do a verification of employment right before escrow closes. If they see a change in employment, the lender can decline your loan.
- Don’t purchase (finance) a vehicle. This may cause a drop in your credit score, or signal to the lender that you may be a higher financial risk.
- Don’t open new lines of credit, buy furniture, or let your credit accounts fall behind. This can negatively affect your credit score, possibly causing the lender to decline your loan.
- Don’t make large deposits into your bank accounts without checking with your loan officer first. Your lender will need to verify the source of the funds and could slow or stall the loan to make sure that those funds belong to you are aren’t some type of undisclosed loan.
- Don’t co-sign a loan for anyone. If you co-sign a loan, you are ultimately responsible for payment should the borrower default. This can negatively impact your loan approval by reducing the amount you are qualified to borrow.
- Don’t spend money you have saved for closing. This includes the remainder of the down payment and other closing costs.
We recommend that you keeping things simple and unchanged until escrow closes, then make your financial moves and purchases. By the way, we have excellent referrals to high integrity loan officers and financial advisors. E-mail us at [email protected] and let us know how we can help.