7 Things You Should Never Do When Closing A House

7 Things You Should Never Do When Closing A House

Purchasing a house is a significant milestone for anybody, but it can be frightening if you are unfamiliar with the process. When the time to close on a home approaches, it’s vital to understand things that may jeopardize your chances of getting the house of your dreams.

Maintaining consistency throughout the closing process can help you have a more predictable and stress-free closure. In this article, we’ll go over several things you should never do while closing on a house.

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Things You Should Never Do When Closing A House

Here are things you should not do before closing on a house.

Do Not Open Or Close Credit Accounts

Perhaps you’re keen to restore your credit. Maybe you’ve received a terrific credit card offer and want to use it to design your new house. Don’t give in to the urge to do either. Only pay off current accounts if your lender asks you to. Don’t shut any credit cards until closing on your house purchase.

When it comes to closing day, you want your debt-to-income ratio to be the same or better. Make every effort to avoid adding to your credit card debt. And, do not open any new credit cards or increase the limit on any current cards until closing on a house.

Never Resign From Your Job

If you’re making a lateral transfer, or even if you’re getting a significant raise in pay, your lender will need to go through the entire validation procedure to ensure everything is legitimate. Changing jobs before closing on your new house might raise red flags with your mortgage lender, who values employment stability and income predictability for the long term.

So, if you’re thinking about taking a lower-paying job, changing professions, starting your own business, or simply resigning, you could be in trouble. Even if you have pre-approval, your lender may want to call your employer to confirm employment before approving the loan.

Do Not Mess With Your Bills

Your payment history will have an impact on your credit score. Your credit score is a crucial factor in evaluating your loan eligibility. Paying your payments and other financial commitments on time is critical. Your credit score can be harmed by only one late payment.

During the house loan process, you should keep a careful eye on your expenditures to ensure you don’t spend more than you can afford to repay in a timely way. It’s best to keep paying all your payments until the refinancing and your balances are zero.

Avoid Making Large Investments

When you’re waiting for a house to close, don’t put down any large deposits. Payroll payments and account transfers are typically acceptable. However, if you deposit a significant sum of money, your lender will most likely want an explanation and confirmation of its origin.

This might hold down the closing process or possibly result in refusal if you can’t correctly reveal the deposit information. In any case, it’s preferable to save larger deposits until closing on a house.

Never Ignore Your Lender

Your lender is actively working to prepare all of the paperwork for your closure. When they require further information, they will usually contact you right away. It’s in your best interests to respond as quickly as possible.

The home purchasing process may be stressful, and while you may have a lot on your plate, don’t risk your progress by delaying communication with your lender. When your lender contacts you, failing to reply promptly may cause a delay in the process, which is the last thing you need at this point.

Avoid Switching Your Bank Accounts

When choosing whether or not to accept you for a loan, lenders consider two factors: where your money comes from and how long it has been in your account. They have to become familiar with your finances and bank history during the homebuying process.

While there may be compelling reasons to transfer banks, doing so may cause your closure to be delayed. Wait until the closing day if you don’t have a convincing cause to switch banks in the middle of your home buying process.

Do Not Take A Short-term Loan

Taking out a short-term loan instead of spending your cash on hand may seem like a smart idea.  Although these loans are often for modest amounts, they usually come with a higher annual percentage rate.

Apart from putting yourself in a less-than-ideal scenario, this might also harm your credit score or reveal a hefty bank deposit that necessitates an explanation at a critical stage of the loan procedure.

The key to a successful closing is to keep your finances as near to what they were when you were approved as feasible. Lenders want borrowers that are financially stable and trustworthy.

Tips For Closing On A House

Here are a few tips to make the closure process go more smoothly.

Ensure That Your Mortgage Has Been Approved

This is a procedure that is generally carried out earlier in the house-hunting process. Sign the relevant paperwork and pay any down payments or fees once you’ve looked at several mortgages provided by lenders and chosen the one you want.

Carry Out A Last Walk-Through

This is frequently referred to as the final house inspection, and it takes place the day before the closing. The house should be entirely clear of the former owner’s belongings at this time. When doing the walk-through, proceed carefully and double-check that everything is operating as it should.

Have All Your Paperwork Ready

Gather all of your bank statements, pay stubs, tax returns, and other paperwork. Some of the paperwork you acquired along the process, such as insurance, house inspection forms, contracts, and mortgages, fall into this category.

Employ The Services of a Professional Escrow Company

You’ll need to place your money into escrow to close on a property. Hiring an experienced escrow firm with creative process solutions might help you in closing your home quickly.


You’ve gone through a lengthy procedure to prove that you’re ready for this chapter of your life; be patient and know that once it’s closed, you may go back to your regular schedule.

After closing, you’ll have greater freedom to switch banks, consolidate debt, and begin furnishing your house with everything you’ll need to settle in.

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