Don’t make a significant purchase
You just found out that your credit is A. This is excellent news because a new car would look great at the entrance to your new home. But wait, if you depend on a mortgage to move, it is better to wait until after closing to buy the car.
An increase in your debt-to-income ratio reduces the amount of monthly income available for payment of the mortgage. If you pay a higher fee, the bank may decide that you cannot pay the house.
Using money to buy the car can also create a problem, as banks consider cash reserves when approving your mortgage. If you make a significant purchase before closing, talk to your loan officer before making it.
Do not change jobs unless necessary
Creditors like to see consistent work history. They are usually not as nervous if you change jobs in the same field, but it is best to stay put until the house keys are in your hand.
Do not give a direct cash deposit directly to a seller for sale by the owner
Your bona fide deposit must go into a trust account. Some for sale by proprietary sellers do not understand that the funds are applied to their closing expenses.
There are incidents about sellers who spent the deposit money before closing. When transactions were not performed for valid reasons – such as financing or repair issues, buyers needed to fight for a refund.
Find a lawyer or other neutral party who will keep the deposit for you until the closing day and check if your contract determines what happens to the funds if the transaction is not completed.
Don’t let your emotions take over
Keep a cool head throughout the house purchase process, especially during and after an inspection. Be realistic. No home is perfect, especially in older homes. It is not uncommon for new owners to take care of some necessary repairs.
Don’t let the seller’s refusal to make a small repair end up with the business in a home you love.
On the other hand, don’t fall so much in love with the house you buy, no matter what needs to be done, unless you are sure you can handle it emotionally and financially.
Decide what type of repair you can realistically perform and follow the decision.