Finally, after months of searching, making offers, and waiting for approval, you’ve found your perfect home and are well into the escrow process of closing the purchase. From here on out, it should be smooth sailing, and you’re free to start thinking about the next chapter of your life. Right? Unfortunately, that isn’t quite the case. Until the sale has officially closed, there are still things you can do that, while they seem smart, may actually derail the purchase. Here are six life changes to hold out on until you’re totally settled in your new home.
- Changing jobs: No matter how attractive that new position or company may be, any occupation switch counts as a major change in status which could invalidate your mortgage approval. It’s best to wait until the keys are in your hand before making a leap like this.
- Changing banks: While bank switching can often be beneficial for your personal funds, doing so can add some serious murkiness to your financial situation, resulting in your lender having to start their verification process over from the very beginning.
- Applying for new credit: Remember that your mortgage approval was based on your existing credit availability. Any small changes you make in the credit realm can have huge consequences, especially if your situation was borderline.
- Paying off debt: Similar to applying for new credit, paying off debt can change your credit status enough to start an eligibility reevaluation. While getting rid of debt is a smart idea overall, it’s best to hold off that extra bit until you’re sure your home loan situation is set in stone.
- Changing marital status: It may seem like buying a home together is the perfect moment to solidify your commitment to your partner, but marriage also means a change in how each of your credit is evaluated. While a couple with similar credit may not experience much change, it’s important to avoid any disruption until you’ve totally closed on your home.
- Making large purchases: As tempting as getting that new bed, couch, or table may be as you anticipate move-in, it’s best to hold off on any significant changes to your financial situation until your mortgage is delivered and rock-solid
Closing is an exciting time in every home buyer’s life, but don’t let the heightened emotions get the better of you. Have patience with your life and finances during this period, and you’ll find that things will work out smoothly.