Dan Gustafson
952-473-1000952-473-1000
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Wayzata Real Estate & Wayzata Homes for Sale | GUSTAFSON
Realtor Dan Gustafson lives/works in Wayzata, MN and provides unparalleled service to buyers & sellers at every price.

Top 8 things not to do before closing on your home loan

If you are in the process of buying a new home or refinancing your existing home, there are a number of actions that you absolutely should not take prior to closing. In no particular order, here are the top 10 ways to not screw up your deal:

Don’t buy a car

This one is self explanatory. Don’t buy or lease an auto before closing. Also, don’t trade in an auto. There are examples left and right that someone traded in a car, and the lender saw it on a soft credit pull 3 days before the close. When the lender sees a new trade line, it becomes an issue. It becomes a huge headache to document–including going back to the dealership, showing the old car was paid off, verifying the new payment, then you have to go to the credit burea and have it fixed. This kind of thing adds a ton of issues and can put your financing in jeopardy particularly if your debt to income ratios are in question.

Don’t move assets around

Anytime an asset is moved from checking to savings, or a distribution from an IRA–all the transfers have to be documented to your lender. It makes it very simple to keep things in a savings account without transferring the funds.

Don’t change jobs

There is a verbal verification of employment before closing on every loan. When you are no longer working at the job you indicated on your mortgage application this really can screw up your ability to purchase or finance a home. On top of that, you really don’t want to switch professions when you have a mortgage application in and before you have closed. Verifying the new employment can add a ton of issues that otherwise do not need to be there.

Don’t buy furniture

People have the tendency to get so excited about a new home that they rush out to the furniture stores with a floor plan in hand and start dreaming about all the nice new furniture they can put into their new home! The problem is that the dream turns into reality when the furniture salesmen does his job and offers easy financing!!! All of sudden the new home you need the furniture for is in jeopardy because of the furniture you want to put into. ┬áPatience is a virtue, so don’t run out and buy furniture until after the closing.

Don’t rack up credit card debt

When your credit card balance jumps from $2,000 to $11,000 before the closing, the lender is going to see this with a soft credit pull. It also adds to the debt to income ratio–and the buyer in this example had to pay off their credit card in order to close on the house.

Don’t go out and apply for new debt

Here’s a recurring theme–there is a soft credit pull before your close on your loan. Any inquiry for new debt is going to put your loan at risk. Just don’t do it–and this applies to furniture, appliances, Sears, Wal-mart–whatever. Just say no.

Don’t consolidate bills

Bill consolidation is best left for another time and can screw up your closing just like the rest of these items.

Don’t pack up all your financial documents and tax returns

You may need something prior to close, and if it’s in a trailer, truck, or storage location you can’t access, you could be in trouble.

Most of this stuff should be pretty self explanatory, and these are just reminders for you. Basically the message is don’t take any financial action prior to close!!

If you have any questions or comments, let us know we’d be happy to help! Dan (952) 473-1000 or Elisha (952) 473-9000.

Wayzata Listings

875 Lake Street N, Unit 204

Wayzata, MN

  • 2 Beds
  • 3 Baths
  • 2190 sq ft
  • $1,350,000

875 Lake Street N, Unit 316

Wayzata, MN

  • 1 Beds
  • 2 Baths
  • 1110 sq ft
  • $725,000

460 Highcroft Road

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $1,825,000

686 Ferndale Road W

Wayzata, MN

  • 4 Beds
  • 8 Baths
  • 7750 sq ft
  • $5,995,000

641 Harmony Circle

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $295,000

875 Lake Street N, Unit 313

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 2254 sq ft
  • $1,299,000

114 Edgewood Court

Wayzata, MN

  • 3 Beds
  • 4 Baths
  • 2500 sq ft
  • $650,000

601 Bushaway Road

Wayzata, MN

  • 5 Beds
  • 8 Baths
  • 10016 sq ft
  • $7,500,000

215 Barry Avenue S, Unit 119

Wayzata, MN

  • 2 Beds
  • 2 Baths
  • 991 sq ft
  • $1,590

15011 Tammer Lane

Wayzata, MN

  • 6 Beds
  • 4 Baths
  • 4252 sq ft
  • $695,000

1052 Circle Drive E

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $489,000

105 E Lake Street, Unit 107

Wayzata, MN

  • 2 Beds
  • 2 Baths
  • 1370 sq ft
  • $725,000

105 E Lake Street, Unit 305

Wayzata, MN

  • 2 Beds
  • 2 Baths
  • 2090 sq ft
  • $1,215,000

105 E Lake Street, Unit 102

Wayzata, MN

  • 2 Beds
  • 3 Baths
  • 2250 sq ft
  • $990,000

1124 Hollybrook Drive

Wayzata, MN

  • 4 Beds
  • 4 Baths
  • 3405 sq ft
  • $450,000

259 E Lake Street, Unit 208

Wayzata, MN

  • 1 Beds
  • 2 Baths
  • 1207 sq ft
  • $599,900

875 Lake Street, Unit 203

Wayzata, MN

  • 2 Beds
  • 3 Baths
  • 1880 sq ft
  • $1,195,000

955 Wayzata Boulevard W

Wayzata, MN

  • 5 Beds
  • 4 Baths
  • 3588 sq ft
  • $569,900

575 Waycliffe Drive N

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 3293 sq ft
  • $735,000

1239 La Salle Street

Wayzata, MN

  • 5 Beds
  • 5 Baths
  • 4393 sq ft
  • $1,475,000

184 Westwood Lane

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $895,000

510 Locust Hills Drive

Wayzata, MN

  • 4 Beds
  • 4 Baths
  • 4095 sq ft
  • $1,950,000

370 Ferndale Road W

Wayzata, MN

  • 4 Beds
  • 6 Baths
  • 5516 sq ft
  • $3,799,000

105 E Lake Street, Unit 301

Wayzata, MN

  • 4 Beds
  • 3 Baths
  • 4000 sq ft
  • $2,378,000

430 Ferndale Road W

Wayzata, MN

  • 6 Beds
  • 15 Baths
  • 18649 sq ft
  • $9,449,000

115 Chicago Avenue S

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 2060 sq ft
  • $895,000

105 E Lake Street, Unit 108

Wayzata, MN

  • 2 Beds
  • 2 Baths
  • 1300 sq ft
  • $685,000

105 E Lake Street, Unit 101

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 3000 sq ft
  • $1,390,000

140 Highland Lane

Wayzata, MN

  • 5 Beds
  • 7 Baths
  • 6538 sq ft
  • $2,495,000

1101 La Salle Street

Wayzata, MN

  • Beds
  • 2 Baths
  • 3054 sq ft
  • $585,000

366 Waycliffe Circle N

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 3441 sq ft
  • $775,000

217 Byrondale Avenue

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 3700 sq ft
  • $895,000

1533 Hollybrook Road

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 2719 sq ft
  • $379,900

367 Ridgeview Drive

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $279,000

1590 Locust Hills Circle

Wayzata, MN

  • 4 Beds
  • 6 Baths
  • 5044 sq ft
  • $2,995,000

346 Pondridge Circle

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 1696 sq ft
  • $325,000

1066 E Circle Drive

Wayzata, MN

  • 3 Beds
  • 2 Baths
  • 2918 sq ft
  • $624,900

901 Lake Street E, Unit 203

Wayzata, MN

  • 3 Beds
  • 3 Baths
  • 2911 sq ft
  • $2,060,000

264 Bushaway Road

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $829,000

260 Bushaway Road

Wayzata, MN

  • Beds
  • 0 Baths
  • 0 sq ft
  • $729,000