Residential

What NOT to do when you’re closing on a home

The loan is approved, the contract is signed, the title is clean, the closing date is set, and everything seems on track to get that home.

And then some people do the unthinkable that costs them their dream home.

“I’ve had clients call me and say they’ve quit their job, or bought a new car,” just before close, says Mark Livingstone, a mortgage broker with Cornerstone First Financial in Washington, D.C. “All I can do is say ‘what were you thinking?’ I’ve seen a number of deals fall through that way.”

It’s tempting to splurge just before you buy a home. After all, you’ve probably got big-ticket items to buy like a washer and dryer, or a lawn mower, or new furniture, or bedding. And you’ve probably paid down your other credit cards and paid off car loans and otherwise cleaned up anything bad on your credit ahead of applying for a mortgage. Now there’s a store offering you a $10,000 line of credit for furniture with no payments for a year so you can fill your new house?

Read Article at MarketWatch.com

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