5 Steps to a Smooth Closing On Your New Home

So you’ve found your dream home. Make sure missteps don’t prevent a successful closing. Here are some helpful hints to a smooth closing!

1. Be truthful on your mortgage application

You may think fudging your income a little or omitting debts when applying for a mortgage will go unnoticed. Not true. Lenders have become more diligent in verifying information on mortgage applications. If you fib, expect to be found out and denied the loan. Go ahead and be truthful upfront so the lender can help you over any hurdles you may have.

2. Hold off on big purchases

Most lenders check buyers’ credit again right before the closing to be sure their financial condition hasn’t weakened. If you’ve opened new credit cards, significantly increased the balance on existing cards, taken out new loans, or depleted your savings, you could make your lender change its mind on funding your home loan. Although it’s tempting to purchase new furniture and other items for your new home, or even a new car, wait until after the closing.

3. Keep your job

The lender may refuse to fund your loan if you quit or change jobs before you close. The time to take either step is after a home closing, not before. However, no one could advise quiting a job if you don't have a new one already if you just bought a home either. Think twice before you put yourself in that situation.

4. Meet contingencies

If your contract requires you to do something before the sale, do it. If you’re required to secure financing, promptly provide all the information the lender requires. If you must deposit additional funds into escrow, don’t stall. If you have 10 days to get a home inspection, call the inspector immediately. These things seem small, but they are vital to the contract and a smooth closing.

5. Consider deadlines immovable

Get your funds together a week or so before the closing, so you don’t have to ask for a delay. If you’ll need to bring a certified check to closing, get it from the bank the day before, not the day of, your closing. Treat deadlines as final.