Closing on a home is an exciting time. You’re making big life changes, whether it’s your first home, second home to make room for that baby on the way, or that vacation spot you’ve always dreamed of. It’s such an exciting time, you may as well go out and make other life changes—like buying that new car or that $12,000 leather couch, right? Wrong.
Making large purchases, switching careers, or in any way altering your financial resume before closing, or when your house is in escrow, is one of the largest mistakes a buyer can make. Even minor changes to your credit ratios could cause your loan to be dropped or denied. In addition to losing the home you have your heart set on, you could even lose your deposit.
Have you been dreaming of leaving your desk job to start your own business? That’s fantastic—but don’t do it right before you close. Doing so could cost you your loan. If you’re switching careers and your new position will have guaranteed comparable or improved salary, then as long as you notify your lender, it should not negatively affect your loan. However, if you’re switching to a job with an uncertain payout—your own boutique decorating firm, or a gluten-free catering company—than you should hold off or risk losing your financing.
As a general rule, once you have completed your loan application, don’t buy anything on credit. While your new home may need new furnishings, and that brand new washer/dryer combo is calling to you, wait until you’ve settled to make any big purchases.
For more information on financing your home, please contact RE/MAX of Boulder, Inc. at 303-449-7000, or 1-800-825-7000.
RE/MAX of Boulder, Inc. located on the corner of Canyon and Folsom, is nationally and locally recognized as one of the most successful real estate offices in the industry. Nationally, they are one of the "Top 500 Power Brokers in the United States" as listed in National Real Estate & Relocation magazine. Real Trends ranked them #1 in the Nation for Closed Sales Volume for 2010. Regionally, for the 5th year in a row, the company has been named the #1 RE/MAX office in America for Single Office Closed Volume. They can be reached at 303.449.7000 or visit http://www.BoulderCO.com. Connect with them on Facebook and Twitter, search remaxofboulder. Subscribe to their YouTube channel and see videos of all their homes for sale at http://youtube.com/remaxofboulder