There are plenty of things that can derail your real estate transaction at the last minute. Here are five common examples and how to avoid them.
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Today I am going to share five common mistakes that we see our clients make while they are in the process of buying and/or closing on a home purchase. These seemingly innocuous things can really set you back or completely stall your closing and we do not want to see anyone in that position. Here is what you should know:
1. Do not change your marital status. Your home’s title is affected by your marital status. Be sure that both your lender and title company are aware of any change in status beforehand so that the appropriate documents can be prepared.
2. Do not change jobs. A change in jobs may result in your loan being denied. Do not think you are safe just because you have a pre-approval. Many times, lenders will call your employer to re-verify your employment status just prior to closing.
3. Do not switch banks. After the lender has verified your funds at one or more institutions, the money should remain there until it is used for closing.
The funds to purchase your home should remain in the same bank account throughout the process.
4. Do not pay off any existing accounts unless your lender specifically requests it. If they advise you to pay off certain bills to help you qualify for a loan, follow that advice. I cannot tell you how many times buyers did not follow this advice and we had to move back to the drawing board right before closing.
5. Do not make any large purchases. A major purchase that requires a withdrawal from verified funds or increases your debt can result in you no longer qualifying for your home.
I know that these items seem small, but knowing is half the battle and hopefully you can avoid these pitfalls. If you have any questions for us or we can help you out in any way, please feel free to give us a call or send us an email. We look forward to hearing from you.