Q. I bought a home am waiting for escrow to close. Are there some things I should or should not be doing right now with respect to my finances while I wait to sign the final documents?
A. A home you are buying is not yours until everything is finalized, when all of the paperwork has been signed and the keys are in your hands.
To avoid any mishap financially while you are waiting for escrow to close, you should consider the following:
Don’t make a major purchase because that might change your credit limit or debt-to-income ratio.
An increase in your debt-to-income ratio changes what is available for your mortgage payment, and the bank may not think you can afford this home with any new financial obligations.
That new car you want to go with the new home should wait until the home is yours.
If you must make a major purchase, be sure you discuss this with your loan agent before making any changes.
Don’t change jobs unless you must, as banks like to see a steady job history.
Don’t forget to switch utilities and line up your hazard insurance.
While this sounds obvious, some people forget, and your lender will want to see hazard insurance before you close.
Stay calm if the appraisal comes in low.
There are some things you and your agent can do to fix this.
It is the agent’s job to help you get to closing.
When it comes to lender requirements, know what is expected of you and take care of it.
For instance, a certificate of eligibility is required to move forward on a VA loan.
That’s something you must handle yourself.
Answer lender questions and provide required paperwork as quickly as possible.
Your closing depends on it.
Good advise from
Vickie Hughes
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Your neighborhood specialist!
