10 Things You Shouldn't Do Before Closing

The sellers accepted your offer to purchase. The home is officially under contract and you're counting down the days to closing. Don't worry. All will be well if you keep your cool and follow a few important guidelines.

1. Don't Make Another Major Purchase
   You've just found out your credit is A+. So you've decided a new car would look fantastic in the driveway of your new home. If you're paying cash for the home go right ahead. But if you are depending on a mortgage to move in you'd best wait until after closing.
   If you must make a major purchase before closing, talk to your loan officer before you do it.
   
   
2. Don't Change Jobs
   Banks like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the keys to the house are in your hand.
   
   
3. Don't Give an Earnest Money Deposit Directly to a FSBO Seller It should go into a trust account or with the title company. Some FSBO sellers don't understand that funds are a good faith deposit to be applied to your expenses at closing. I've heard many stories about sellers who spent the buyer's money prior to closing. When the transactions didn't take place for valid reasons--such as financing or repair problems, the buyers had to fight to retrieve their funds. Find an attorney who will hold the deposit for you until closing day.
   
   
4. Don't Let Your Emotions Take Over
   There are many areas where that statement applies, but one of the most important involves the home inspection. Be realistic. No home is perfect, especially older homes. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love. It's not at all unusual for new owners to take care of some things themselves.
   On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done (unless you're absolutely sure you can handle it emotionally and financially). Decide what type of repairs you can realistically handle, then stick with the decision.
   
   
5. Don't Forget to Switch Utilities
   That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home.
   
   
6. Don't Forget About Hazard Insurance
   A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Your lender will require an insurance binder for the new home at or prior to closing. Take care of it right away.
   
   
7. Don't Become Best Friends with the Seller
   I'll get some flack on this one. It's great to be friendly, but don't get into too many long discussions with the sellers because personality conflicts often cloud judgments. I've had selling clients refuse to make even small repairs because something about the buyers turned them off.
   
   
8. Don't Panic if the Appraisal Comes in Low
   At least not at first. There are some things you (and your agent) can do to correct the problem.
   
   
9. Don't Go It Alone
   If you're working with an agent rely on their experience to help you make it to closing.
   
   
10. Don't Ignore the Requirements
    Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. If the lender asks you for something, get it to them immediately.