Purchasing a new home is a significant financial investment and a prolonged process. Your home will not be officially yours until the home closing process is complete. This process can be quite complicated, so the best way to ensure a relatively smooth and efficient home closing is by keeping everything consistent. This means avoiding other major life changes that impact your finances or lifestyle. Read on for four of the most significant actions you should avoid taking during a home closing.
Changing Your Marital Status
The title of your home, in particular, will be affected if you change your marital status during a home closing. Both spouses owning the home must be listed on the title, and if you are removing a spouse, that change must be noted as well. You must make your lender and title company aware of any potential changes so that all of your documents will be correct.
A job change can potentially lead to your loan being denied, especially if you are taking a lower-paying position or starting in a new field. Just because you have received approval earlier in the home closing process, that doesn’t mean you can’t have your approval revoked. The lender can call your employer to re-verify your employment before funding the loan on your behalf.
One of the most significant actions you want to avoid during a home closing is anything that will make your lender wary of your money habits. After your lender has verified your funds at an institution, the money should remain there until your home can be purchased.
Making Large Purchases
A home is already a significant purchase. If you make another substantial purchase that requires a withdrawal from your verified funds, this can increase your debt and disqualify you for your home loan. Your lender may check your credit or re-verify the funds at the last minute, so don’t expect to be able to hide any other large purchases.
Ultimately, patience is required during a home closing. Be patient and avoid making any dramatic changes that can be otherwise avoided. This consistency will help you complete your home closing in an efficient and timely manner.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.