f you are using a loan to finance your home purchase, there are three mistakes you need to avoid if you want to close on the property.

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In this market, 90% of homebuyers get a loan, while 10% of buyers pay cash. If you are getting a loan, there are a few things you need to know.

It’s always crazy when we get to a closing table with a buyer who has an amazing income, great credit, and a good job only to find that they are denied from getting the loan.

The buyer then loses their earnest money and any money they spent on appraisals and inspections, not to mention the emotional investment they made in the home. If you want to get the keys to your next home, there are a few things you need to remember.

First of all, don’t make any large purchases. Don’t buy a car or any furniture. Big purchases put a balance on your credit card, which could be a red flag for lenders. Big purchases also push your ratios, which could impact your credit score. Avoid buying any big-ticket items. I would be very careful about spending over $100, and I would avoid spending over $500 altogether. You can always buy furniture once you have the keys to your home.

Also, let’s say you buy the furniture and something else happens to cause the deal to fall apart. Now, you’ve not only lost your home, but you’re also stuck with a couch you can’t return. Just wait until you actually close on the property until you buy any furniture.


Secondly, make sure you stay at your job. I’ve seen buyers quit their job just two or three days before closing. In order to buy a home, you have to have income to pay the mortgage. The bank usually verifies your employment the day of closing or the day before, so don’t quit your job the same week you close.

Even going on sabbatical or medical leave can negatively affect your closing. If you are not actively working, getting a paycheck, and making money, you won’t be able to get into that home.

Finally, don’t start applying for additional credit. If you start applying for different credit cards, your credit score will be affected. Applying for more credit also raises a red flag for the lender. They may wonder if you are applying for credit because there is an issue with your income.

Ultimately, the best thing you can do is just sit tight until you close on your home. Don’t apply for credit, don’t make any major job changes, and don’t buy a boat or a car or furniture. Just hold on until you have the keys in your hand.

Here’s a little bonus tip as well: Make sure that the down payment can be refunded. Deadlines can be moved and closing can be delayed, so make sure you are flexible with those. If the deal does fall through, make sure you can get your money back.

If you have any other questions about buying a home in our current market, just give me a call or send me an email. I would be happy to help you!