We made it out of option period! This is the most common time for contracts to fall apart, so, congratulations! If you’re reading this, yours probably didn’t.
Now that option is over, there are a few hurdles left for us to jump before we sit down at the closing table.
Two are lending and scheduling closing, which we’ll cover in this post.
#1. Lending (unless you’re paying cash). Your lender will be working over the next few weeks to ensure that both you and the property qualify for financing. For a refresher, review the Buyer 10 Commandments. Or, “Commendments” according to our marketing department.
Don’t go buy furniture yet: Your lender prequalifies you for your home loan based on your income and debts. If your debts change before closing, you may no longer qualify for the loan. We recommend waiting until after closing to make big purchases like furniture, a new car, or anything out of the ordinary from your normal spending habits. When in doubt, consult with your lender before making any special purchases.
Don’t change jobs, become self-employed, or tell your boss what you really think about him/her: You’re being qualified for your loan based on your current employment and income. So, at least for the next few weeks, please don’t get fired or accept a position at a new company. If you’re considering the latter, talk to your lender first to ensure this won’t disqualify you for financing.
And finally, your scheduling your closing date. Below are some common issues we run into. Here’s what you can do to reduce your stress around closing.
Movers: Please call us before finalizing the date with your movers! It is not advisable to schedule movers for your closing date. For various reasons, closing may be delayed by a few hours or even a few days. If your movers are scheduled the day of closing and a few hours delay will be a disaster, this is a bad situation to be in. Storage fees are expensive! We don’t want you to be paying them.
Closing Date: Closing dates can move around. Earlier, later, the same day but later in the day. Closing dates move for a number of reasons. Try to keep your plans flexible enough that this won’t totally derail you. (See movers above). If you can be flexible by a few days, even a day or two, it greatly reduces the amount of stress as we approach closing. Start thinking about “Plan B” in case the closing date changes.
Vacation Near Closing? Power of Attorney? If you have a vacation planned within a week of closing, please let us know early. Remember that part above about the closing date moving? If we know in advance, we can plan to “mail out” documents.
In summary, call us before you schedule movers, leave town, quit your job, buy anything expensive, or really do anything important with your life at all. This may sound a bit “Big Brother” -esque, but trust me, you’ll be happy you did.