I hear this all the time from real estate agents and mortgage brokers. There are countless sob stories of people not being able to close on their home because they make these simple mistakes...and they were often warned about them by both their agent and their mortgage broker. So, when you're looking to buy a house on Long Island, here's one more reminder for you.
When you're about to close on a new home, you are under a magnifying glass from the bank. So be careful. Some of these may cause you to lose a house; others may get lucky and just cause a delay. Don't make the mistake of thinking that since you're approved, your home free. You aren't home free until all those docs are signed at the closing table.
1. Don't make any large purchases, especially on your credit card. This includes cars, furniture...anything big.
2. Don't open new lines of credit or loans. This can change your debt to income ratio and disqualify you.
3. Don't change jobs. (Of course if you unexpectedly lose your job, that's out of your control...and it may even impact whether you can afford/want to buy a house now) But, do not purposely quit nor change jobs while you are in process of closing on a home. Just wait.
4. Be sure to pay all of your bills on time, no matter how big or small.
5. Avoid large and unusual deposits. These may become red flags for your bank.
6. And, of course, make sure that you've planned ahead and have the money you will need at the closing table. Always discuss this with your mortgage broker.
IF you have any questions, don't hesitate to contact your mortgage broker. He or she will advise you on the risks and if there is a better solution that won't impact your ability to close.
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