There are literally thousands of reasons for a real estate transaction to not close by the agreed upon closing date. Personally, I feel that I’ve heard thousands…so maybe there are actually millions! Either way, any real estate professional can quickly rattle off a long list of reasons, excuses, mis-steps, mis-cues, and/or mis-communications that led to mis-sing a closing date.
As professionals, we do our best to warn of the potential pitfalls, holdups and speedbumps. But…a real estate transaction does require some participation on behalf of each client. I have to admit, most of my clients are uber-prepared. They are quick, responsive, and smart. Those are the ones that are most likely to read this. However, I have worked with a few clients…ohhhh I’ve worked with a few… and if by chance you happen to be reading this, you know who you are…and this is for people like you…
3. Don’t Quit Your Job and Don’t Let Your Credit Change!
If you’ve followed steps 1 and 2, then you’ve found a good mortgage professional and you were honest on your application. Hopefully you were pre-approved after providing all of your information to your loan officer. Now that you’ve provided that information, remember THAT is the information that they qualified you on…and they will be re-checking that information prior to closing on your loan. So, for the 30 or so days that you are waiting for your loan to close, I have a simple request: please do NOT go all “Jerry Maguire” in your office and quit your day job…because you need to use that income to show the lender that you can pay that mortgage each month.
Secondly, I know that a lot of folks want to “pimp out” their new crib with brand new TV’s, Stereo Systems, etc…and Best Buy will give you a great deal if you just open up a credit card with them. Problem is…your loan officer was going off of the way your credit report looked BEFORE you opened up any other lines of credit (which drop your score for a bit). That could lead to a higher rate and/or not qualifying for the loan you applied for. It may seem innocent, but a new TV could equal No New Keys.
So – keep things as stable, consistent, and unassuming as possible until you close on your new home…THEN you can go buck wild with your credit and getting a new job.
(*Author’s Note* I am not endorsing you to go buck wild…as that type of philosophy has (in part) led to the most recent housing crisis!).