Lee-ann Thiessen

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Closing on a Home? Avoid Doing These 4 Things

You may breathe a sigh of relief once your offer to purchase a home has been accepted, but you’re not quite done yet. Between the time you come to terms with the sellers and the moment you finally put your key in the front door, you’ll be navigating the closing process—along with its associated costs.
 
Below are four things you should not do during the closing process..

1. Go on a shopping spree

I get it; it’s exciting to start imagining yourself in your new home, and many buyers want to rush out and buy new furniture.  Don't do it..yet.  Especially, those offers.. don't pay until such and such a date.. 

Any new big ticket purchases can raise red flags, delay your financing approval.. or even ruin it!

Ditto for buying a new vehicle.  Buy it after you have moved in!

2. Quitting your job

Sure, it would be great to have a higher salary now that you’ll be tackling monthly mortgage payments, property taxes and home insurance, but wait until the closing process is finalized before you blitz the internet job boards with your resume, cautions Stevens. 

“I’ve seen a lot of buyers take higher-paying jobs between that phase of getting an unconditional accepted offer and completing on the deal, but some of these new jobs, even though the buyer thinks they’re in a better position, come with a probation period. If it’s a temporary or casual position, that could cause issues with the lender.”

3. Start booking renovation projects

It’s so tempting to make plans for opening up all the walls in your new home, ripping up the carpet or gutting the kitchen.   Although the wait times to book contractors can be long, don’t get ahead of yourself by hiring crews to swing their sledgehammers. Putting down deposits and signing remodeling contracts is a bad idea until you officially own the home, says Stevens. 

“I typically tell my purchasers to live in the house for 12 months before doing renovations so they get to know the property inside-out and figure out where they can better spend their dollars,” he says. 

Of course, if the home you’re buying needs a massive overhaul before it’s even livable, you can get started as soon as all the final paperwork is signed and completed.

4. Getting overwhelmed 

Being patient makes sense during the closing process, says Stevens, and your REALTOR® will be able to guide you through. There are many moving parts to the closing process, and getting overwhelmed can ultimately make it an unenjoyable experience for you.

“It does become complicated and can be stressful so it’s important to slow down and take the proper steps toward a successful completion,” he says.

Purchasing a new home is exciting, and it’s understandable why you’re raring to go once your offer has been accepted, but making large financial decisions during closing can be detrimental to the entire process. When in doubt, check with your REALTOR® to make sure your next financial move doesn’t affect your ability to close on a home.

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