• Avoid Major Purchases: Don’t open new lines of credit or make large purchases (like furniture or cars) before closing. These actions can affect your credit score and debt-to-income ratio, jeopardizing your loan approval. • Stay Employed: Lenders verify employment before closing. Changing jobs or switching to commission-based income can complicate your loan approval. • Respond Promptly: Turn in all required documents and respond to lender requests on time to prevent delays. • Clarify Gifted Funds: If you receive money for your down payment from family or friends, ensure it’s documented as a gift, not a loan. 10 Steps to a Smooth Closing 1. Open an Escrow: Escrow serves as a neutral third party to manage funds and documents during the transaction. Be aware of escrow fees and ensure you understand all associated costs. 2. Lock in Your Interest Rate: Secure your mortgage rate early, as rates can fluctuate. Rate locks typically last 30–60 days, so align the lock period with your closing timeline. 3. Conduct a Home Inspection: Even newly built homes can have issues. An inspection ensures you’re aware of the property’s condition and can renegotiate if necessary. 4. Schedule a Pest Inspection: Look for termites, ants, or other pests that could cause costly damage. Addressing pest issues early can save you headaches later. 5. Address Inspection Issues: If problems arise, negotiate repairs or ask for a price adjustment. Always consult professionals for repair estimates. 6. Order a Title Search and Insurance: Title insurance
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