Lets say you are already under contract and have 30-45 days before closing. A lot of buyers think this is torture time because they are so excited to get in and have to wait through the process. But I am here to give you a little bit of dos and don’ts.
Do not finance anything. I know you are getting a new house and you need a new bbq grill, a couch, etc. You are going to need to wait until after closing to make any large purchases. The bank is watching you to be sure you are a good credit risk to lend to.
Do not switch positions at work. Do not switch jobs, do not take a job with lower pay, do not get fired. A day or two before closing the bank will call your employer to verify employment because you kind of need a job to pay back the loan.
Do not co sign for anything. If your 17 year old sister calls and says you are the best brother ever, will you cosign for me on this new car? Do not do it. You need to wait until after closing.
Do not pay off huge balances of your credit cards unless your mortgage broker tells you to specifically. Do not make any of those financial decisions on your home without consulting with your lender.
Do not receive any huge financial gifts prior to closing. If your aunt calls and says I hear you are buying a home and I want to send you 10k now, don’t let her send to you until after closing or after you verify it will not cause a red flag with your loan process. Banks want to know where your money is coming from. It must be documented. There is a form for receiving gifts and banks will want to see proof of this.
Do not drive by the house and talk to the seller by yourself. You have an agent representing you and seller has agent representing them. If you try to negotiate something directly without your agent involved and it isn’t documented properly, it could come down to he said she said and we don’t want that.
Do keep saving. It will look good to lender.
Do get your paperwork to the lender quickly.
Do be accessible for your agent and lender to get additional signatures if needed.
Do get a home inspection. This is a perfect time to check out the home and know what you are getting into.
Do make arrangements for utilities.