It's understandable; you’re excited; you've found the right home, we have helped you negotiate a contract, you made a loan application and the house passed inspections. Closing is not that far away, and you are making plans to move and put personal touches on your new home. It is so easy to get caught up in the dreaming and planning for after the closing!
Even if you have an initial approval on your mortgage, little things can derail the process which isn't over until the papers are signed at settlement and funds distributed to the seller. The lender will usually do verifications on your credit score and your employment status just prior to the closing to determine if there have been any material changes to the borrower's credit or income that might disqualify the borrower. Lenders do not want to see changes in your financial situation, even small changes that may seem insignificant to you.
Most lending and real estate professionals recommend:
- Do not make any new major purchases that could affect your debt-to-income ratio
- Do not buy things for your new home until after you close
- Do not apply, co-sign or add any new credit (even ORDERING that new furniture or appliances can cause a change in your credit)
- Do not close or consolidate credit card accounts without advice from your lender
- Do not quit your job or change jobs or even accept a promotion
- Do not change banks
- Do not talk to the seller without your agent
Don't do anything that would affect your credit or income while you're waiting to sign the final papers at settlement. That new furniture won't do any good if you can't put it into the house you are trying to purchase.