The day has finally arrived, closing day! To say that the process of buying a house is a long one is a huge understatement. You spend week after week scouring the internet for new listings, and then spend countless hours driving around to showings and checking out neighborhoods. You breathe a sigh of relief when your offer is accepted, but then find out the real process is just starting. You then have to work through the inspection, appraisal, and title checks.
When you finally reach the closing table, the last thing you want to do is say something that could cause the deal not to go through, or put a damper on the day.
Avoid saying these 5 things at all costs.
“I can’t wait to set up all my new furniture!”
Your lender wants to be sure that you are a safe risk to lend money to. When they set your interest rate and terms for your loan, they were working from the information that they had at that time.
If you went out right after that and put a bunch of new items on credit, this is going to affect your credit score. If your lender catches wind of this, they could rerun your information, which could cause your interest rate to go up.
“We are going to get started gutting the house right away.”
Saying something like this won’t hold up the process at all, but it could upset the seller. Most homeowners are attached to their house because they have fond memories.
If you plan on gutting what they spent years building, they don’t want to hear about it. Keep this information to yourself.
Any last minute changes you want made at the house
Does the seller have a large swing set in their backyard and you don’t have a need for it? Closing is not the time to ask them to tear it down, or to make any other changes.
Once you reach the closing table, the only things you should mention in this area is if you noticed during the final walk-through that some of the agreed upon changes have not been made.
“I was shocked the house appraised for so much over the sale price.”
Once again, this information is not going to hold up your process at all, but it is unnecessary to mention. Sellers want to feel like they got a good deal on the house as much as the buyer does.
It’s exciting to find out that you are going to have more equity in the house then you thought you would, but you don’t need to let the seller now. This just simply lets them know they could have gotten more for the house. Why do that to them on a day that should be exciting for both parties?
“I just quit my job” or “I just lost my job”
This is a major red flag to a lender that needs to trust that you are going to be able to repay your loan. Any large changes can alter the lender’s ability to loan you money. At some closings you are even required to sign a document declaring that your job situation has not changed.
There is an old saying, “less is more,” that you want to follow when you are at closing. The less you say, the better you will do. Do not disclose information that you don’t need to, and consider how what you say will affect the seller as well. Keep in mind that closing day is an emotional day for all involved.