realtyreport
Closing Time
A lot can happen between the time you make an offer on a home and when you get your new keys. What you do before your closing can create problems for you, slow down the home-buying process, or even stop it all together. As you count down the days to your closing, there are a few things you should avoid doing.
First, don't make major purchases. Your credit may be in great shape, but if you make any major purchases, you'll increase your debt-to-income ratio and reduce that portion of your monthly income that's meant for mortgage payments. As a result, your lender might decide you can't afford to carry the home. Using cash for large purchases isn't a good idea either, as lenders take your cash reserves into account when processing your mortgage approval.
It's also best to avoid changing jobs until the property is officially yours. Changing employers can create uncertainty about your future earnings, particularly if a substantial portion of your income will come from commissions or bonuses, or you work part-time. For those considering self-employment, know that most lenders like to see a two- or three-year track record of self-employment income before approving a loan.
Finally, don't shift your money around. When approving your loan, your lender may ask to see statements on your liquid assets (checking and savings accounts, stocks, mutual funds, retirement accounts) for the last two or three years, including a complete record of all deposits and withdrawals. If you've been moving your money around, you could make it difficult for your lender to properly document the paper trail, so leave your money where it is and don't change banks for now.
