5 Closing Don’ts
CHANGE YOUR MARITAL STATUS
How you hold title is affected by your marital status. Be sure to make both your lender and the title company aware of any changes in your marital status so that documents can be prepared correctly.
A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.
SWITCH BANKS OR MOVE YOUR MONEY TO ANOTHER INSTITUTION
After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT
If your Loan Officer advises you to pay off certain bills in order to qualify for the loan, follow that advice.
Otherwise, leave your accounts as they are until your escrow closes.
MAKE ANY LARGE PURCHASES
A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
“The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO and Realty Title Services, Inc. (“RTS”) are not law firms and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers.
Realty Title Services, Inc. and First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.”