By: Rose Quinn and Zoelle Poyner
Published: December 1, 2022
Did you just go under contract to purchase a home and you're working with a lender to ensure that everything goes smoothly so that you can close on time?? If that's you, this article explains 4 strong suggestions that you need to take into consideration. Even if you are not yet in that position, this is still important information to know in the future!
Being under contract for a home is such an exciting thing! Finally, you are about to close on a home that's completely yours! However, there are still mistakes that people can make if they are not careful. Here's what you should do:
1. Avoid making big purchases
-Sure, that new car looks great for that price, but not right now! Save your money because large purchases can actually conflict with your loan approval. You need to make sure that you can afford that monthly payment, this is not the right time to be purchasing expensive items.
2. Don't buy furniture or other household items on credit, wait until after you close!
-One of the worst things you can do during this time is to damage your credit, after you've worked hard to get it in a good position! So, move your dream sofa in the shopping cart and leave it there! Once you close, then you can place that sofa where it finally belongs, in your home.
3. Avoid large deposits in your bank account
-Large deposits may present a red flag when it comes to your loan. If you have difficulty explaining the origin of deposit, this can mess with your loan qualification. All financial information needs to be accounted for during this process.
4. Work with your lender to get all your documents in on time and always stay truthful!
-Late documents and errors can majorly delay the closing process. Make sure that all information is accurate to prevent your closing date moving further and further away. Check in with your lender and real estate agent to ensure that they have everything they need.
Going under contract is an exciting time but also a time to continue taking the necessary steps to ensure you close on time. By being smart, careful, and knowledgeable, your home closure will go great! Stay committed, you're almost there!
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