7 Tips for a Successful Closing
Buying your new home in Huntsville is an adventure. Hopefully, it’s a wonderful one. While we can’t always guarantee a completely smooth ride, however we do promise to do our very best to avoid bumps along the way. As the old saying goes “It takes 2 to tango”. We will do our job, and you must do yours.
Today, We’ll Discuss Financing
When you applied for your mortgage loan for you new home in Huntsville, you were approved because the lender believed you are credit worthy. This means that you have proven your ability to carry a home loan and are responsible.
To cover their rears, the lender WILL check up on you right up until the moment BEFORE closing, to ensure you are still credit worthy. They DO pull your credit again, right before closing. Just because you have an approval letter in hand does NOT mean you will close.
Some Things You Should Not Do Before Closing
Here is a list of what NOT to do before closing on your home in Huntsville to ensure you get to closing.
1. Isn’t it exciting to get an accepted contract? The first thing many want to do is to shop for new furniture to fill up that new place they will soon call home. It’s fine to shop, but DO NOT make a purchase until after closing, unless you have your lenders blessing.
2. That new car you’ve been drooling over? Now that you will have a garage, you can just see it parked in there, right? You can see your new garage door opener on the dash, waiting to use it the first time. DO NOT even think about it until after closing. Otherwise, you could find yourself with a new car and no where to park it!
3. Aunt Sally and Cousin John need you to co-sign for their new car. DO NOT even consider doing this until AFTER closing. (I wouldn’t recommend ever signing for Aunt Sally or Cousin John…odds are you’ll end up paying for the debt for them).
4. That new refrigerator, washer and dryer that you’ll be needing? NO…Don’t let the salesman convince you to open up their “zero interest, don’t pay until 2020 when they are ready to blow up” deals. This DOES show up on your credit report.
5. Tired of the old 9-5 grind at your current job? You must check with your lender to ensure switching jobs will not put your loan in jeopardy. While it may be an increase in salary, the lender will need proof of employment and a pay stub.
6. While out shopping at your favorite store, upon check out they ALWAYS ask me “Would you be interested in saving 10% today? Just fill out this credit application and we’ll give you this great discount!”. NO.
7. Do you have monthly debts that you are committed to? KEEP them current. The lenders will pull a credit report right before closing. Child support is included here. It is very important to continue to pay on your current debts and NOT create new ones.
Here is the Point
You do not want to create any new debt, nor do you want to have credit inquiries on your credit report. This can LOWER your score and lead you right back to the front door of your rental home. …I’ve seen this happen. …Don’t let it happen to you.