Embarking on the journey to homeownership is an exciting yet intricate process, with the final step being the house closing. However, this critical stage can be fraught with pitfalls. To ensure a smooth transition into your new home, let’s explore and steer clear of the 10 common mistakes people often make before house closing.
Common Mistakes before House Closing
- 𝗠𝗮𝗸𝗶𝗻𝗴 𝗮 𝗯𝗶𝗴 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲, such as furniture, car, or boat, that can lower your credit score or affect your debt-to-income ratio
- 𝗢𝗽𝗲𝗻𝗶𝗻𝗴 𝗼𝗿 𝗰𝗹𝗼𝘀𝗶𝗻𝗴 𝗮 𝗻𝗲𝘄 𝗹𝗶𝗻𝗲 𝗼𝗳 𝗰𝗿𝗲𝗱𝗶𝘁, which can also change your credit score and raise red flags for the lender
- 𝗦𝘄𝗶𝘁𝗰𝗵𝗶𝗻𝗴 𝗼𝗿 𝗾𝘂𝗶𝘁𝘁𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗷𝗼𝗯 can disrupt your income verification and delay the closing process
- 𝗧𝗮𝗸𝗶𝗻𝗴 𝗼𝘂𝘁 𝗮 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗹𝗼𝗮𝗻 𝗼𝗿 𝗰𝗼-𝘀𝗶𝗴𝗻𝗶𝗻𝗴 𝗮 𝗹𝗼𝗮𝗻 for someone else, which can increase your debt and affect your loan eligibility
- 𝗘𝗿𝗿𝗼𝗿𝘀 𝗶𝗻 𝗱𝗼𝗰𝘂𝗺𝗲𝗻𝘁𝘀, such as misspelled names, incorrect loan amounts, or missing pages, that can cause confusion and require corrections
- 𝗡𝗼𝘁 𝗳𝗶𝗻𝗮𝗹𝗶𝘇𝗶𝗻𝗴 𝗟𝗲𝗻𝗱𝗲𝗿 𝘀𝗼𝗼𝗻
- 𝗙𝗮𝗶𝗹𝗶𝗻𝗴 𝘁𝗼 𝗰𝗮𝗿𝗲𝗳𝘂𝗹𝗹𝘆 𝗿𝗲𝘃𝗶𝗲𝘄 𝘁𝗵𝗲 𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝗗𝗶𝘀𝗰𝗹𝗼𝘀𝘂𝗿𝗲, which outlines all the final details of the mortgage, including interest rates, fees, and other costs, can lead to unexpected financial surprises
- 𝗡𝗼𝘁 𝘁𝗵𝗼𝗿𝗼𝘂𝗴𝗵𝗹𝘆 𝗿𝗲𝘃𝗶𝗲𝘄𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 𝗼𝗳 𝗮 𝗵𝗼𝗺𝗲 𝗶𝗻𝘀𝗽𝗲𝗰𝘁𝗶𝗼𝗻 can mean missing potential issues or repair costs that could have been negotiated with the seller
- 𝗨𝗻𝗱𝗲𝗿𝗲𝘀𝘁𝗶𝗺𝗮𝘁𝗶𝗻𝗴 𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝗖𝗼𝘀𝘁𝘀. Closing costs/Cash to Close can add up significantly, and not budgeting for them can strain your finances at the last minute
- 𝗡𝗼𝘁 𝗕𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝗳𝗼𝗿 𝗣𝗼𝘀𝘁-𝗖𝗹𝗼𝘀𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀 such as property taxes, insurance premiums, maintenance, and utilities can strain your finances after closing.
Important Tips: Moving Utilities and Services to New Home
To avoid these common house closing mistakes, it’s crucial to work closely with a knowledgeable real estate agent, a reputable lender, and an experienced attorney or closing agent. They can guide you through the process and help ensure a smooth and successful closing on your new home.
