Avoid THESE St. Louis Closing Mistakes
Buying a new home is a very exciting time. You have worked so hard to pay off your bills and improve your credit in order to be able to afford your home, and now you can’t wait to get settled and begin decorating. All of these things can make you feel very good leading up to the purchase of your new home. However, to ensure a smooth closing process, avoid these common St. Louis closing mistakes.
Wanting a New Car
You may think now that you have paid off a few things you can also afford a new car. Lenders however, probably won’t agree with this thought process. A new car means more monthly payments which take away from what you could be spending on your home. Maintaining a home can get expensive, especially if this is your first time. So wait until you are settled before deciding to get that new set of wheels.
Buying New Furniture
You will most likely need or want new furniture for your new home. You may want to do this before you move in, knowing that it can take some time to be delivered. However, this can cause some problems with your finances. Spending money on furniture usually means pulling out the credit cards or having to dip into your reserves. These two things can make a lender concerned as you could be impacting your debt-to-income ratio which has already been calculated.
Deciding to Change Jobs
A new job can be a red flag for lenders. This is because they don’t have any paperwork to back up how much money you will make, even if you are making the same amount of money or more. Lenders will call and verify you have a job before the closing and if you aren’t working at the original place listed on the paperwork they will be concerned. Make sure you tell your lender as soon as you are thinking about changing jobs because they will be able to work with you to make sure the closing happens as close to on time as possible.
Taking Out a Line of Credit
You may need some extra money in order to meet the down payment requirement. Some homebuyers may dip into their 401k or other retirement accounts, while others opt to take out a line of credit. Lenders will need to add this amount into your debt ratio which can change your results.
When closing on your St. Louis home you need to make sure you make smart financial choices up until the end. Lenders look into your finances multiple times before you close, so make sure until you sign those papers you make smart choices. You do not want to commit these St. Louis closing mistakes and have regret.