Perfect property. Check! Awesome offer. Check! Ready acceptance. Check! No problem inspection. Check! Conditions fulfilled. Check! Closing?
So now onto buying new furniture, and a shiny new car for you new driveway. Right? Wrong! Your lender will likely be checking and rechecking your credit right until closing. Even if your financing is pre-approved and solid, if you suddenly spike a $10,000 charge on your credit card, you may risk your financing due to a change in debt to income ratio.
Consider some of dos and don’ts before closing:
Don’t do anything that might change your credit profile and raises red flags with your lender. For example, don’t:
- Change employment or quit your job
- Charge major purchases or make large cash transactions
- Buy a car
- Apply for new credit cards or consumer/store charge accounts
- Accept a cash gift into your bank account
- Make deposits that are hard to explain
There are, however, a few things you actually really should do:
- Ask your lawyer to explain the details of the property’s title report. It might appear to be legalese but important nuggets of information my be hidden such as any third party rights that are standing.
- Pay attention to any conditions, covenants and restrictions that are on title on on declaration in the case of condos. Information here may impact plans for that swimming pool that you want to install or the free range chick coop that wanted for your backyard.
- Verify that your municipality or service provider permits your lawyer to apply for utilities and services in your name on your behalf as part of the closing process . Oftentimes you might be expected apply for hydro, gas, etc yourself.
- Make sure that everyone has your new address. I offer my clients assistance with new address notification. Ask me for details!
- Put on a garage sale or list stuff on Craigslist; you’ll never have to pack, move and unpack things that you will not be using at your new home.
- On moving day, change the locks. You certainly don’t want to come home to see the previous owner’s cousin’s brother-in-law who wasn’t informed of their move crashing on your new sofa.
With a little planning your closing will be easy, breezy and uneventful, taking you seamlessly from one home to your new one.