DON'T SCREW UP YOUR OWN CLOSING!!

Yes, It can and does happen! Many lenders pull a last minute credit check just before closing on a loan. And if you have not maintained your credit you could be refused the funds to close. After you have a signed contract on your new home, do NOT make any changes that would create a negative impact on your ability to close the deal. Here are some of the most common mistakes people make.

1. They buy (on credit) furniture for the new home or a new car for the wife or take on any additional debt. This really messes up your debt to income ratio and you may not get your home loan.

2. They change jobs and this is a cause for concern to the lender. IF the job is in the same line of work and the pay is the same or better, you will probably get away with this. If you income is dependent on overtime pay, commissions, etc., do not leave your job until the homes closes.

3. They move some of their money around between accounts or make large deposits or withdrawals to purchase something they need for the new home. Even if nothing really changes with the move, the lender will require a paper trail and proof your funds are still liquid.

4. They don't pay some bill(s) on time. Even if you dispute some payment, do not let it become past due or turned over for collection while in the closing process. Deal with this latter if possible or at least notify you lender of what you are doing and why, including documentation.

5. They win $1000 on a lottery ticket or rich old Aunt Nancy gives them a grand for house warming and they deposit this money into one of their accounts. While this seems good, you may be scrambling at the last minute to explain and verify it to the lender.

Any changes that might affect your ability to pay the mortgage will send up a red flag to the lender and will cause you problems at closing. It is better to not make any changes until after closing.