February 2025
Closing on a house is an exciting milestone, but it can also be a stressful financial process. To help ensure a smooth transaction and protect your investment, here are some common mistakes to avoid during the home-buying process:
- Making large purchases before closing
Avoid making significant purchases—such as buying furniture or a new car—before your closing date. These expenses can impact your credit score and debt-to-income ratio, potentially delaying or even jeopardizing your mortgage approval. - Changing jobs or income sources
Lenders rely on your stable income to approve your loan. Changing jobs or switching to a less stable income source can raise red flags and delay the approval process. - Applying for or closing a personal loan or credit card
Keeping your credit score stable is key to closing on time. Any changes to your credit can cause your lender to re-evaluate your application and risk delays or even mortgage approval. - Failing to review your closing disclosure
Before you close, carefully review your closing disclosure, which outlines your loan terms, fees, and costs. Any discrepancies could lead to unexpected expenses or delays. - Ignoring additional costs beyond the down payment
Homeownership comes with more costs than just the down payment. Be sure to budget for closing costs, home inspections, insurance, and any repairs or upgrades the property might need.
By avoiding these common financial mistakes, you can help ensure that your home closing goes smoothly and stay on track for long-term homeownership success.
If you have any questions or need more information, request our Homebuyer Guidebook or visit one of our Mortgage Consultants today!