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2 mistakes to avoid when closing on a home

On Behalf of | Mar 18, 2024 | Real Estate

Whether it is your first or fifth, a home purchase is a significant milestone in life. If you have shopped around and found your dream home, it’s important that you do everything in your power to ensure that the transaction is concluded as smoothly as possible.

While everything might seem to go to plan, the possibility of making a costly mistake is never far off. For example, the following are two common costly mistakes that you’ll want to steer clear of as you get ready to close on your home.

Making other significant financial decisions right away

Home purchase, in and of itself, is a huge undertaking – financially speaking. This is not the time to make another big purchase like buying a yacht, a car or even expensive furniture. This can easily raise a red flag with your lender. Simply put, avoid purchases that might require you to pay in installments.

This is because, subject to your credit history, such purchases can lower your score and, thus, impact the interest rate on the home loan that you will receive. So, how soon after closing should you get that new ride? Well, once you’re done with the closing day formalities, feel free to walk into that showroom if doing so won’t impact your family’s budget negatively.

Overlooking due diligence

The importance of due diligence during home purchase cannot be overstated. Make an effort to thoroughly inspect the property and investigate the title to find out if it has any issues. You absolutely do not want unpleasant surprises down the road that you could have otherwise detected had you been diligent. If you do not know what to look for, be sure to involve professionals.

Protecting your rights

Closing a home can be an exciting moment. However, it’s critical that you are aware of costly mistakes that can turn your home ownership dream into your worst nightmare. Having sound legal guidance by your side can help you realize a smooth transition into your new home.