5 Things to Keep in Mind That Can Prevent a Home From Closing

Many things can go wrong with your home purchase that can slow the closing process down. Today I am joined by Evan McDonough to give you five things that you should be aware of to keep your closing on track.

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I am joined today by Evan McDonough of Family Mortgage to talk about pitfalls that can prevent a home closing from happening on time and how to avoid these common missteps as a buyer.There are a few important precautions all buyers should take as they embark on their home search. Today I'd like to list five things, in particular, to keep in mind if you're about to begin this process yourself.

1. Maintain your credit score. Lenders will first pull your credit score during the pre-approval process, but will also monitor it throughout the transaction. So avoid taking out unrelated loans or making major purchases during the home buying process. It's important to keep your credit score consistent as you apply for financing for your future home. I recommend that you consult with your lender about the specific variables that could impact your score.

2. Maintain your current employment status. Believe it or not, you have to have the same job during your pre-approval as you do at your closing, so do not change your job. We have to verify employment within ten days of closing for every single client. Even if you get a new job lined up, do not quit your current job. Doing so will stop the loan process.

3. Make sure assets in your bank account can be verified. Do not put actual cash into your bank account, because where that cash came from cannot be verified. If you have cash in your home, do not put it into your account right before closing. Talk to your lender about how to verify your assets.

4. Read and sign the closing disclosure. Four days before the closing date, you will have to sign a closing disclosure. Making sure everything is in order with your closing disclosure is critical, because this will indicate whether you're set to close on time. While working with your lender, ask them if you are on track to have your closing disclosure signed, because that will indicate whether you’re on track to close on time. If you’re selling your current home before closing on the new one, make sure your lender gets your sale of home closing disclosure. If you have this document prior to or on the day of closing, make sure you give it to the lender. This will enable them to fund the purchase and give you the keys on time.

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Do not put actual cash into your bank account, because where that cash came from cannot be verified.

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5. Watch out for wire fraud.Wiring scams have become a significant issue in our market. You may receive false instructions via email from a scammer posing as someone legitimately affiliated with the transaction. Before wiring any funds, verify that the instructions are legitimate. Call your agent, title company, or lender to make sure they were truly the ones behind the email you received. Picking up the phone and having a conversation could help you avoid a mistake that could potentially compromise your home purchase.

At the end of the day, verify everything verbally. If you have any questions, pick up the phone and talk to your lender or agent to make sure before you don’t do anything to potentially compromise your major purchase.

If you have any additional questions for Evan about lending, you can contact him by calling (561) 625-2660 or by email at evan@familymortgage.com.

And, as always, if you are interested in buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you soon.

Evan McDonough
Family Mortgage
(561) 625-2660
evan@familymortgage.com