Three Things that Can Screw Up the Closing Process

It is more difficult than ever to get a mortgage these days. Unfortunately, many first time home buyers and even some experienced home buyers think that once they get approved for a mortgage, the closing is a sure thing. But until you sign those final papers at closing, it is never 100 percent certain that you will be the new owner of that property that you are planning to buy. Here are three common things that can go wrong at closing which can keep you from buying the house that you want.

1. One Final Credit Check
   If your credit is good enough to get approved for the mortgage loan, make sure you keep it that way at least until the closing process is complete. Avoid making major purchases that you will be financing, such as cars, boats or other things because this can bring your credit score down by increasing the debt to income ratio, which is a major factor in determining your score. Also, make sure you continue to pay your bills on time throughout the buying process. Any negative changes in your credit score before closing can put the purchase of your new home in jeopardy.
2. Don’t Quit Your Job
   One of the worst things that you can do between being approved for a mortgage loan is to quit your job. If you don’t have a job with a verifiable income at the time of closing, the entire deal could be off. Even if you have a better job offer with a higher salary, it is important to have a secure job because it makes you look more financially stable to the lender. If it is at all possible, see if you can hold off on starting a new or better job until after the closing process is complete and you have signed those final papers.
3. Having Improper Documentation
   When you arrive to sign your papers at closing, it is important to have all of the documentation that is required to make the sale final. Your mortgage lender will tell you what you should have in hand when you are closing, but some of the basic documentation you will need includes recent pay stubs, current tax returns, bank statements and more. If you simply forget the proper paperwork, you may be able to postpone closing on the house. But if you do not have the proper documentation at all, the process may be halted all together.

When you go through all the trouble of getting a mortgage loan, it would be a shame to get all the way to the point of closing on the house and then having the entire process shut down because you did something that you didn’t even know would mess up the process. By knowing what mistakes to avoid, you can have a smooth and successful closing on your home.

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