Avoid these 7 things before closing on your new home....
Ok, so after spending a couple of months looking for the perfect home, going through the inspection period, the appraisal period and then holding your last breath for the lender to say, "YES" we are going to fund your loan, what have you been doing?
Like any buyer, this in-between time is perfect for shopping online and in your favorite shops for furniture, landscaping ideas, outdoor furniture, paying down some bills or maybe even paying off your car. All of this sounds "normal" and yes, it is perfect fine AFTER you have closed on your dream home.
Here is a real story. While at a closing, my clients and I are awaiting the title officer to give us the good news! The Deed has transferred and you have a new home. The Champagne is on ice and chilling nicely. After some time, the title officer returns and asks, did you buy a car? The lender is showing that your saving has changed and you own a new car? We all sat holding our breath while the confession was made.
Okay, I get it. Why not buy a new car since the loan was approved. Well the loan is only approve for documents and undergoes a final peek to ensure that the buyer is still in good standing right before the lender hits the "pay" button and funds are transferred to the closing. This is important to understand. Any movement of money can create a redflag for the lender and the loan process can be put on hold or terminated depending upon the lenders interpretation of the event. Remember, the lender is most interested in income and the ability to repay the loan. So any change in cash flow may be seen as a crisis for the Lender.
Back to the closing table... my client did close that day and did receive the keys to their new home. When I asked why? The answer was that they didnt think it would be caught since it was only a couple of days before the close of the home. The moral of the story, follow the 7 things never to do before closing and always ask your Realtor for advice.