You finally found the perfect home, wrote an offer and it’s been accepted. Now, you’re counting down the days to closing.
But, before you go on autopilot and assume that closing is a done deal, it’s important to remember that closing isn’t complete until buyer and seller sign off on the closing paperwork and the proper money has exchanged hands. One small hiccup or misstep can cause everything to come crashing down.
As a Knoxville title company, we’ve seen buyers make these mistakes time and time again. Here are 3 mistakes buyers make that delay Knoxville closings.
When buyers make major life changes, like changing jobs, in the process of closing on a home, they throw a major wrench in the system, particularly when they don’t mention this to their mortgage company. When you’re in the process of buying a home, you’re under great scrutiny from the time that you apply for a mortgage until you close on the home.
Don’t make the tragic mistake of making a major life change, like quitting your job or changing jobs, in the process of buying a home. Loan approval is based on the original information that you gave when you apply for the loan. So, if you change this in the middle of the loan process, your mortgage company will have to go back and re-verify this. If you change jobs without telling them, they may not find this out until they do your final verification of employment a few days prior to closing. By then, you’re a few days away from closing and could cause a major delay in closing because you failed to communicate.
If at all possible, avoid making any major changes to employment while applying for your loan. If for some reason this cannot be avoided, be sure to tell your mortgage company sooner rather than later.
A pre-approval doesn’t guarantee loan approval. Unfortunately, many buyers think that putting in their loan application is just a formality and that loan approval is guaranteed. That’s not always the case.
Don’t make the mistake of assuming you’ll get approval. You may be required to submit additional paperwork or provide more documentation. When you’re required to do this, be sure that you take care of getting it to your lender as soon as possible. When you delay, you could delay closing.
You also should remember that any changes to your credit or your debt still matter as you await loan approval. So, be sure to not make any big changes to them.
Finally, don’t spend large sums of money during the process of closing on a Knoxville home. This may seem like an impossible feat. After all, you’re in the process of moving, so there’s a lot to pay for. In addition, you may want to buy certain items for your new home and want them to be there they day you move in.
But, before you go ahead and max out your credit card, let us warn you that this can be a dire closing mistake. Your credit is under a great deal of scrutiny when you buy a home. When you charge a bunch of things on your credit card or take out another line of credit, your credit score can change. Any major changes to your credit can hurt loan approval, particularly if your credit score is borderline.
During the 30 or so days you’re going through loan approval, be careful with your spending. You don’t want to cause any major delays in closing because you absolutely had to go out and buy that new couch or washer and dryer.
Are you in the process of buying or selling a home in the Knoxville area? Title Group would love to assist you in any way possible. You can reach us at 865-392-5801 or via email at [email protected].
Title Group of Tennessee is a full-service Knoxville title company. We specialize in Knox, Sevier, Loudon, Blount, Jefferson, and surrounding counties. Title Group of Tennessee is ALTA Best Practices Certified since September 30, 2015.