Under Contract: Now Be Vigilant to Guard Your Finances!
At this point, you have already committed earnest money for your purchase and paid for an inspection. This means you have some real money in the game. But you know, because you have kept up with your loan officer, that more money will be required from you to accomplish the closing of your new home. In addition to your earnest money, you will likely be paying a combination of some closing costs and a downpayment. Hopefully you and your loan officer have discussed the projected funds you will need to close at some length, as well as discussing what your monthly payments will be going forward.
So, you know you’ll need X dollars on closing day. Is that all you need to keep an eye on while we are in this space between an accepted offer and closing? The answer is a resounding NO! Your loan approval is in progress at this point. You are somewhere between preliminary loan approval, underwriting, and final “clear to close.” Your loan officer will tell you this too, but please – please! – listen: Guard your financial health very intentionally during this time.
What does that mean, “guard my financial health”? What it means is this: any significant change for the worse in your credit score, your employment history, or your funds on hand could potentially kill your deal.
Specific Suggestions to Insure You Can Close When The Time Comes:
While I make them now, they matter from the day you begin your search until the day after you close:
- Do not quit your job or change employers
- Do not sign up for any new credit cards or take out any new lines of credit
- Do not make any major purchases (such as buying a new car)
- Do not cosign a loan for anyone else
- Do not give or receive any gift funds or loans separate from those previously discussed with your loan officer
Sometimes unexpected events come up during your home search. Sometimes these will mean that you can no longer buy the home we have found. But this is not always the case. If something does come up – for example, if you have a car accident and your car is totaled – as soon as you are sure you are OK, call your loan officer and find out what, if anything, can be done to insure that the decisions you have to make at that point do not – if possible – derail your ability to buy the house.
Additional questions? Give me a call- my contact info is below: