Home Buying Tips

Closing on a house is a major milestone in the home-buying process, and it’s a momentous occasion that can make you feel excited and relieved. It’s an opportunity to move on to the next chapter of your life, and it’s important to take precautions to ensure that the process goes as smoothly as possible. Before you close on your new home, there are certain things you should avoid doing. These can include making major purchases, changing jobs, or applying for new credit cards or loans. These actions could affect your credit score and your financial standing, which could potentially impact your ability to secure a loan for your new home. It’s important to stay focused and avoid any unnecessary risks during this important time. By following these guidelines, you can help ensure a successful closing and a smooth transition into your new home.

Keep steady employment

New Job

Keeping steady employment is crucial, especially when it comes to applying for a mortgage. Lenders usually verify your employment status right before closing to ensure that you are still employed and earning a steady income, which is necessary to make mortgage payments. If you have changed jobs or left your job recently, this could raise concerns and potentially jeopardize your closing. It’s important to note that even if you are moving to a new job with a higher salary, lenders may still view this as a risk. Therefore, it’s best to wait until after closing to make any changes to your employment status. By doing so, you can avoid any unexpected delays or cancellations that could impact your ability to secure a mortgage. In summary, keeping steady employment is a crucial factor in securing a mortgage. So, it’s always best to maintain your current job status until after you have closed on your loan.

Avoid purchasing any large items

When you’re in the process of buying a home, it’s important to be mindful of your spending habits.


This means avoiding any large purchases that could negatively impact your debt-to-income ratio. Your debt-to-income ratio is simply the amount of debt you have in comparison to your income, and it’s used by lenders to determine your ability to repay your mortgage. If you make a large purchase before closing, such as buying a new car or furniture, this will increase your debt and could potentially lower your credit score, which could make it more difficult to get approved for a mortgage. In some cases, you may even be denied a loan or be forced to pay a higher interest rate, which could cost you thousands of dollars over the life of your loan. So, it’s important to be careful with your spending and avoid any unnecessary purchases until after you’ve closed on your new home.

Do not open a new line of credit

When you’re in the process of applying for a mortgage, it’s important to keep your financial situation as stable as possible. One way to do this is to avoid opening any new lines of credit. This includes credit cards, store credit, and even a new phone plan. While you may be tempted to take advantage of a pre-approved credit offer, doing so could negatively impact your credit score and your chances of getting approved for a mortgage.

When you open a new line of credit, this information is reported to the credit bureaus and included in your credit report. This could cause your credit score to drop, particularly if you already have a lot of debt or a short credit history. In addition, taking on new debt could increase your debt-to-income ratio, which is an important factor that lenders consider when deciding whether to approve your mortgage application.

Overall, it’s best to avoid opening any new lines of credit until after you have secured your mortgage. This will help ensure that your credit score is as strong as possible and that you are in the best position to qualify for the loan you need.

Avoid taking out a personal loan

When it comes to purchasing a new home, many people consider taking out a personal loan as an option to cover expenses such as closing costs or a down payment. However, it is important to understand that this decision could potentially harm your chances of closing on your new home.

Home Loan

Personal loans are classified as unsecured debt, which means that they are not backed by collateral. This makes them a riskier option for lenders and could result in your mortgage application being rejected or being offered a higher interest rate. As a result, it is best to explore other options such as saving up for a down payment or seeking assistance from a family member.

Closing on a house can be a long and complex process, but there are some things that you can do to make it easier. One of the most important things to avoid is changing jobs or experiencing a lapse in employment. Lenders want to see that you have steady income and a stable job history, so it’s best to stay put until after you’ve closed on the house. Another thing to avoid is making any large purchases, such as a new car or expensive furniture. These purchases can affect your debt-to-income ratio and make you appear less financially stable to lenders. Additionally, you should avoid opening any new lines of credit or taking out personal loans. These actions can also negatively impact your credit score and make it more difficult to secure a mortgage loan. By following these guidelines, you can increase your chances of closing on your new home and start enjoying all the benefits of homeownership.