not to do on closing a house

There is a misconception that the closing of a mortgage is the easiest part of the process. But mortgage loan experts know that there is still a lot of work involved. Once the loan is approved and the contract is signed, it is important to know what not to do after closing on a house.  You can avoid this mistake when you work with a mortgage broker or a real estate agent.

To avoid any complications when closing your home, here is the list of things not to do after closing on a house.

1. Do not check up on your credit report.

This might seem like an innocent move on your part but when you do this, it could end up harming your credit score. It is important to avoid even checking your credit report after closing a sale on a house. This seemingly harmless inquiry can end up delaying the closing of your home. Accept the fact that your mortgage loan provider has thoroughly evaluated your report and that they have used that information to determine your interest rate. 

2. Do not open a new credit.

This is another item on what not to do after closing on a house. You might be tempted to open a new credit once you have closed on a mortgage loan; after all, the loan has already been approved. But opening a new line of credit (or even closing one) can cause a disruption in your existing credit. 

It is tempting to splurge right after you’ve closed on the house. For instance, you will want to buy big-ticket items such as new furniture and appliances to furnish your new home. Don’t do it. Your mortgage lender or the bank will question any significant transaction done when you are processing a mortgage loan.

3. Do not close any credit accounts.

In connection with the item above, you should not close any existing credit accounts, either (after you have closed on a house). This is true even when you have a credit card account that you rarely use. If possible, you can cut up the credit card so you won’t be tempted to use it. But never ever close the account, especially if you are still waiting to close on the home purchase. 

4. Do not quit your job.

When you are about to close on the sale of your home, the mortgage lender will conduct a final review of your application details. This will include your employment status; this is a step that mortgage lenders do to ensure that your personal and financial information are true by the time of closing the house since your initial application. If you quit your job, this could catch your mortgage lender by surprise. And surprises are not good when it comes to real estate sales. You want to make sure that the information you provided upon application are the same by the time of closing the home.


not add credit card limit
5. Do not add to your credit cards’ credit limit.

Increasing the credit limit on your credit card might be something you will want to consider when you are about to close on a house. You might be looking at using your credit card to make big purchases for your new home. But since you are about to enter your mortgage payments for the new home, your financial situation will change. It is important to focus on meeting your mortgage payments first instead of adding to the total amount of credit you owe. If you get an offer to increase your card’s credit limit, make sure to not respond to or decline it. 

6. Do not cosign a loan with anyone.

Co-signing a loan is a huge financial responsibility. Since you are about to embark on a huge financial responsibility yourself (such as paying the mortgage on your new home), it can be tricky to juggle both at once. If you choose to co-sign a loan, you are legally obliged to make payments on the loan on behalf of the original borrower. 

If you are asked to cosign a loan after closing on a house, make sure to decline politely. You need to prepare yourself financially for the closing of your new house or risk getting that home at all.

7. Do not take out any payday loans.

Depending on your personal situation, taking out any loan is a no-no after you have closed a house. This will give you time to get comfortable with making payments for your new mortgage. Payday loans are notorious for having huge interest rates and the fact that they had to be repaid over a short period of time. If you can, stay away from them (or any kind of loans). 

8. Do not ignore questions from your lender or broker.


The closing of the house is a critical stage in your home purchase. This can make or break the acquisition of your new home. If you are contacted by the broker or lender about any final details that they need to get, make sure that you respond to them promptly and honestly. The more upfront you are, the better you can communicate with them and the more efficient the closing process will be.

9. Do not forget to undergo home inspection.

Forgetting to undergo home inspection is one of the top items on what not to do after closing on a house. A home inspection should be done by an expert. This will help you identify any problems within the house such as plumbing, roofing, or the foundation. It is important that these issues are addressed before you close the sale and move into your new home. 

not forget home inspection
10. Do not get on a renovation project… yet.

When you close on a house, you might be excited to jump on a redecorating project. You might even have ideas on how to remodel your home already. But wait a while before you do so that you can sort out your finances and for you to establish a budget that will not end up hurting your mortgage payments. After all, remodeling a home is not an inexpensive project to take on.