You have found your dream home, made an offer, and have been notified that your offer was accepted. However, you should not celebrate just quite yet, as a number of different items must be completed before the previous homeowner can hand you the house keys. The closing, also known as completion or settlement, is the final step within a real estate transaction. Your closing date will be established, and it will usually be several weeks after your offer has been accepted. Once the closing is complete, the house will officially become yours. Read on to learn a few things you should not do prior to your closing.
Actions to Avoid During Settlement
Buying a home can be an exciting and stressful process. Be sure to keep these five tips in mind while you are in the process of closing on your new house:
- Do not close any open accounts. This is a common mistake many new home buyers make. Closing any open credit card or loan accounts makes you look like you have less credit available, which can hurt your chances of securing financing for your home. You can pay off any loans you may have (if possible), but do not close the accounts.
- Do not make large purchases. This should go without saying. A house is one of the largest purchases you will make in your lifetime, so you should not be buying a car, new furniture for your new home, or updating your wardrobe with expensive attire during this time. All of these unnecessary purchases can throw a wrench in your home-buying plans and cause additional stress and financial issues.
- Avoid paying bills late. Whether it has been five hours or five days, paying a bill after the due date can lower your credit score. Your credit report and score are monitored up until the day the house becomes yours, so maintaining good credit is very important.
- Do not gain new employment or quit your job. Lenders pay close attention to your employment history to make sure you are financially stable and capable of making loan payments. Stability is key, especially during this time. Do not change jobs unless circumstances make it absolutely necessary.
- Do not change banks. Regardless of whether your bank has made you upset, or you have read about an outstanding deal at another lending institution, you should stick with the bank you have. If you still feel obligated to change banks after the closing date, you may do so then.
Contact a Naperville Real Estate Attorney
Are you ready to finalize the purchase of your new home? If so, it is imperative that you have professional legal representation. Contact the skilled Kane County real estate attorney at the Law Office of Christina Martell. Chrissie will guide you through the entire legal process and answer any questions you may have along the way. Call our office today at 630-717-2772 to schedule a confidential consultation. We offer consultations for $100, which is credited toward your bill moving forward upon hiring our firm.
Source:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1364&ChapterID=24