Picture this: You are about to close on your dream home. Then, BOOM. The deal falls through because you financed a brand-new jet ski two days before closing. Who knew that buying a floating couch could sink your mortgage approval?
Buying a home is exciting, but it is also a fragile process that can derail faster than your New Year’s gym resolution. Here are 5 mistakes that could put your closing at risk (and how to avoid them):
Financing a New Car
A client once celebrated his pending home purchase by treating himself to a brand-new Escalade – the day before closing. He wasn’t planning on moving into his car, but that’s exactly what happened. While we scrambled to fix things, he literally slept in the Escalade until we sorted it out. I am happy to report he eventually moved into his new house!
Quitting or Changing Jobs
One week before closing, a client quit his job to become an Uber driver. I don’t blame anyone for chasing their dreams, but maybe… not during escrow? Mortgage underwriters prefer consistency. As you can imagine, this change didn’t end well – for the loan or his Uber career.
Opening New Credit Cards
I had a client open a new credit card days before closing. You know the saying, “Save 20% today if you open a card!” Who can resist? Turns out, opening new credit lines right before closing is like poking a sleeping bear. It might seem harmless, but it will wake up the underwriters…
Depositing Large Sums of Cash
A client once deposited $200,000 in cold, hard cash right before closing. When the underwriter asked where the money came from, his response was basically, “Fuhgeddaboudit.” Well, we did not forget about it. Spoiler alert – the loan did not close. I later found out he did find a new home… at the state penitentiary.
Buying Expensive Furniture on Credit
Clients can not resist the pull of those RC Willey sales. I’ve had multiple people load up on couches, fridges, and TVs on credit right before closing. One client’s shopping spree nearly blew the whole deal. Furniture looks great in the house – but you need the house first.
If you’re thinking about buying a home, refinancing, or just want to make sure you’re on the right track, let’s chat. I keep things simple, save you from costly mistakes, and promise to gently remind you not to buy that boat until the ink is dry.
