You are well on your way to becoming a homeowner of that dreamy waterfront home for sale. You've found the home of your dreams, the seller accepted your offer and you have a lender's approval to move forward. It's a happy time, but before you rush off to the paint aisle of your favorite big box store you might want to take a moment to realize that the home is technically not really yours until the closing papers are signed and you are handed the keys. Getting ahead of yourself during the time period between the offer acceptance and the closing could cause your dreams to be put on hold, so read on to find out about some unwise moves to make before your closing.
Finally, you can spend some money on things you've been putting off. When your credit is being evaluated for a home loan, you were probably warned about making large purchases that could raise your credit card balances. You should realize that your credit is being evaluated on an on-going basis all the way until closing time. Don't request new credit and don't use your cards unnecessarily prior to closing.
You are now cleared to buy that new refrigerator. No, you aren't. Not only is your credit being scrutinized continuously, your savings and checking accounts are also being monitored. Any larger purchase, such as the several hundred dollars that new appliance costs, could raise negative attention by the lender. There is a minimum amount of money that is required to be in your account to pay for closing costs, so don't make a move without checking with your lender first.
For example, consider this situation: You are helping a friend buy a new coach, but the store won't take a check from her. She promises to pay you back if you can use your bank-connected debit card to buy the couch. Don't be surprised to get a call from your lender about the missing money, even if it has already been replaced. They will be closely interested in all funds leaving and coming into your accounts until you have closed on the loan.
You are thrilled to be offered a better position at a rival company, and you accept the offer. You may want to rethink that move. Your approval for your home loan is based on the proof of income from a job, and if you change jobs before your lending is 100% secure, you may be placing the entire process on hold until you have had your paperwork updated with the correct employment info. Be sure to let your real estate agent and your lender know about any upcoming potential employment changes and be prepared to have your closing delayed pending verification.