Congrats! You have found the perfect home and have worked out an agreement with the seller! If you are obtaining a loan for your new home, your lender is going to be gathering a lot of information from you in order to verify the information that you provided on your loan application. Sometimes buyers run into issues by making employment or financial changes in the few weeks before closing – we want to help avoid that! Here are some things to consider before closing on your new home:
- Cash. Many times the lender will need to review your bank accounts and verify the source and destination of deposits and transfers. This can include ensuring that your earnest money check cleared your account. DO NOT make cash deposits without talking to your lender first. Cash is not traceable and cannot be used as funds for closing/down payment or reserves. Please also avoid making multiple transfers between bank accounts if you can – those transfers will need to be documented.
- Credit. We know that buying new furniture for your new home might be high on your list of to-do’s, but please wait to open any new credit cards (this includes in-store charge accounts) until after your closing is complete. DO NOT borrow cash from a credit card to help pay your closing costs. DO NOT buy a new car or take on any other debt without consulting your lender first. Should you pay off credit card debts before you purchase? Talk with your lender!
- Employment. Verification of Employment (VOE) is completed by banks and lenders prior to closing to make sure that the income you provided on your application is current and you are still holding the same job with the same pay. DO NOT quit your job prior to closing on your new home, and please discuss any job changes with your lender.