Company Logo
SIGN UP LOG IN
Griffith Realty

Subscribe and receive email notifications of new blog posts.




rss logo RSS Feed
Area Information | 62 Posts
Brighton MI | 31 Posts
Buy a house | 42 Posts
Fenton, MI | 1 Posts
Griffith Realty | 24 Posts
Home Improvement | 31 Posts
Home purchasing tips | 3 Posts
Home Tips | 9 Posts
Homeownership | 23 Posts
Howell, MI | 12 Posts
Livingston County | 131 Posts
Milford, MI | 3 Posts
Sell Your Home | 35 Posts
Uncategorized | 1 Posts
Buy a house Griffith Realty Local Attractions Things to Do Pre-approval Mortgage Mortgage Lender Community Events Sell Your Home Home on the lake Lakehouse living Howell MI Listing Price Comparative Market Analysis First-time buyers For buyers Home staging Home-selling tips For the Seller Home-buying tips Contingent Listings Festivals Kensington Metropark Family Fun Homeowner Tips Home Security For Homeowners Holiday Fun Local businesses Auto manufacturing Holidays Healthcare organizations Area hospitals Down payment Restaurants REALTOR® Real estate agent Home Maintenace Home Improvement Parks and Outdoor Spaces Multigenerational homes Livingston County MI Outdoor fun Camping Fixer-Upper Staging Your Home Homeowners Insurance Brighton MI Whitmore Lake Milford MI Fenton MI Hamburg Township Hartland Township MI South Lyon MI Howell Fowlerville MI Pinckney MI Summer Garden Landscaping pets dogs curb appeal gardening outdoors Kitchen Remodel Kitchen interior design decor home decor staging downtown fall fall events downtown events Mount Brighton Ski Ski Season Winter shops shopping local shops concerts music summer events
English
September
28

September 28th, 2020 by

Closing Process

So you made an offer on the home of your dreams, and the seller accepted. The last thing you want to do is prolong the closing. Your mortgage is contingent on you maintaining the same financial profile throughout the closing period, and any abrupt changes may lead to problems or delays. Our real estate agents made a list of the five things you shouldn't do during the closing process.

  1. Don't Make Any Large Purchases
    If you're planning on closing on a new home in the short term, it's best to avoid large purchases such as jewelry, cars, or other amenities. Your bank or lender pre-approved your mortgage application based on your credit profile and current assets. Making a major purchase, either with cash or credit, can have a drastic impact on your creditworthiness and jeopardize the status of your funding.
  2. Don't Do Anything that Will Impact Your Credit
    When you're pre-approved for a mortgage, a lender will pull your credit report to determine your creditworthiness. If your credit score drastically changes between your pre-approval and closing, it could impact the status of your mortgage. It may sound counterintuitive, but avoid paying off any large accounts or closing credit cards during this time. Reducing your available credit or closing account can reduce the size of your credit profile or raise your debt-to-income ratio. Both of these factors can lead to a drop in credit score.
  3. Don't Switch Banks
    When applying for a mortgage, your lender will request bank statements for the 2-3 months prior to the closing. As part of this process, the lender wants to verify that you have enough funds for a down payment. They also want to make sure the assets are "seasoned", which means they've been in your account for an extended period of time and they can track where the funding came from. Switching bank accounts will likely result in you having to start this process from the beginning.
  4. Don't Change Your Marital Status
    The status of your loan could be jeopardized by changes in your marital status as changes in your marriage likely represent changes to your financial situation. This can likely lead to significant delays when it comes to processing your loan and finalizing paperwork.
  5. Don't Change Employers
    Your mortgage application was approved based on your current income and employer. Changing jobs can mean your approval is no longer valid. If you take a lower-paying job, your lender may no longer believe you're able to afford your new home. Lenders frequently call to verify employment, so make sure you're not taking a significant pay cut prior to closing.

At the end of the day, changes to your marriage, credit profile, or financial situation can delay or impact the closing process, so be sure to steer clear of major life events if you can help it. Contact us today for more tips on the closing process.

Categories: Buy a house
Tags: Buy a house, Griffith Realty, Mortgage, First-time buyers, For buyers, Down payment, For Homeowners

Login to My Homefinder

Forgot Password

Register

Pixel