Holiday Builders


getting approval for a home loan is an exciting time. Here are eight things NOT TO DO before you close your home loan.

Five Things NOT TO DO Before You Close on Your New Home

Congratulations, you’re purchasing a new home and you’ve been pre-approved for a home loan. Here’s a list of five things NOT TO DO while you’re waiting to close on your new home.

Don’t change jobs.

Lenders look at your employment history to ensure you are financially stable and able to make your loan payments. It is best to stay with your current employer until you close on your loan. However, if you are terminated and need to find new employment, be sure to keep your lender abreast of your employment changes.

Don’t take “same as cash” loans.

Do not purchase furniture or other items through same as cash, or other loans before you close on your home loan.

Do not borrow, finance or otherwise purchase furniture, appliances or other goods prior to closing on your home loan. “Same as cash” finance offers are so tempting. Unfortunately, additional debt will offset your debt-to-income ratio. Your credit score could drop which might not stop a loan – but could increase your interest rate.

Don’t Buy a Car – Love Your Existing Car

Take care of your current vehicle and do not purchase a new car before you have closed on your home loan.

The best practice while you’re waiting for your home loan to close, is to pour the love into your existing car. Give it a wash, inside and out. No matter how attractive the offering by your local car dealer is, do not buy a new car while you are waiting to close on your home loan. A car purchase significantly impacts home-buying plans. Your loan pre-approval is based on the state of your credit and the amount of debt you owe.

Don’t Be Late Paying Your Bills

The loan approval process is a dynamic process. To that end, lenders will look at your credit multiple times throughout the loan process. It is imperative to keep your payments up to date and on time for all of your loan accounts. That includes existing house payments, car payments, and credit cards.

Don’t Spend the Money You’ve Saved for Closing Costs

Don't spend the money you've saved for closing costs while you're waiting to close on your home loan.

Avoid temptation. Buying a home can be a stressful process – it’s a large purchase. Be mindful of the money you’ve saved for your down payment and closing costs. Realize that there are significant costs associated with a home purchase from all kinds of fees related to closing, to insurance costs, land surveys, appraisals, etc. Don’t get caught short. When it comes to finalizing a home loan, timing is everything. Be careful not to spend the monies you’ve saved while waiting for your home loan to close.

Coastal Loans

Five things NOT TO DO while you're waiting to close on your home loan.

Holiday Builders works with Coastal Loans, our lending partner. Coastal Loans is a joint venture between FBC Mortgage and Holiday Builders. Coastal Loans is familiar with building practices and new home construction. A team of Loan Originators services Holiday Builders’ customers exclusively. For information on loan products, current interest rates and the application process, visit Coastal Loans. 


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