# 8 Critical Mistakes to Avoid When Closing on a Home By Opendoor Editorial Team | 2019-06-26 > We’ll walk you through how to avoid some common pitfalls when closing escrow on a home. ## Key Takeaways # 8 Critical Mistakes to Avoid When Closing on a Home You've found the home, your [offer was accepted](https://www.opendoor.com/articles/what-happens-after-house-offer-is-accepted), and your mortgage is approved. But the weeks between [mortgage approval](https://www.opendoor.com/articles/mortgage-preapproval) and closing day are when deals quietly fall apart — often because of avoidable mistakes buyers don't realize they're making. This guide covers the eight most common missteps that can delay or derail your closing, plus what to do instead to keep your home purchase on track. [Get your offer](#) ## What not to do before closing on a house The period between mortgage approval and closing day is more sensitive than most buyers expect. Lenders don't just approve you once and walk away. They re-check your credit, income, and debts right before funding the loan. Any major financial change during this window can delay your closing, change your loan terms, or result in a denial. Here's the core idea: your lender approved you based on a specific financial snapshot. They expect that picture to stay the same until you sign the final paperwork. So while it might feel like you've already crossed the finish line, you haven't quite collected the keys yet. The good news? Avoiding problems is straightforward once you know what to watch for. ## 8 mistakes that can derail your home closing ### 1. Making large purchases before closing That sectional sofa you've been eyeing for your new living room? It can wait. Large purchases, whether paid with credit or cash, can throw off your [debt-to-income ratio](https://www.opendoor.com/articles/how-much-house-can-I-afford-guide). This ratio compares your monthly debt payments to your monthly income, and lenders typically require a [maximum ratio between 36% and 43%](https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/) to approve your mortgage. Even paying cash for a big item can cause issues. A suddenly depleted bank account might signal to your lender that you don't have enough reserves for unexpected expenses after closing. The simplest approach: hold off on furniture, appliances, and other big-ticket items until after you have the keys. ### 2. Opening new lines of credit Applying for a new credit card or store financing triggers a hard inquiry on your credit report. Hard inquiries can lower your credit score by [up to five points](https://www.myfico.com/credit-education/credit-reports/does-checking-credit-score-lower-it), and if you're close to the minimum score for your loan, those points matter. Beyond the inquiry itself, new credit changes your overall financial profile. Your lender approved you based on your existing credit picture. Any deviation introduces uncertainty, and lenders prefer certainty. This applies to store credit cards too. That 15% discount at the furniture store isn't worth risking your mortgage approval. ### 3. Changing or quitting your job Lenders verify employment right before closing, sometimes just days before you sign. A job change, even a promotion or lateral move to a different company, can delay or derail your approval because it introduces income uncertainty. If a career opportunity comes up during this window, try to wait until after closing if possible. If waiting isn't realistic, contact your loan officer immediately. They can advise you on next steps and help you understand how the change might affect your timeline. ### 4. Missing bill payments during escrow With everything happening during a home purchase, it's easy to let a bill slip. But a missed payment can drop your credit score and raise red flags with your lender at the worst possible time. A quick note on terminology: a late payment is one made after the due date but before the next billing cycle. A missed payment is typically 30 or more days overdue. Many bills have a grace period where you can pay late without fees or credit consequences. However, once a payment is reported as missed, the damage to your credit score can be significant. Setting up autopay or adding calendar reminders for due dates can help you stay current during this busy period. ### 5. Taking out a personal loan Any new debt affects your qualification, whether it comes from a bank, credit union, or even a family member. Personal loans increase your monthly debt obligations, which directly impacts your debt-to-income ratio. Even a small or temporary loan counts. Lenders view it as added liability. The timing here is everything: wait until after closing to take on any new financial commitments. ### 6. Making large unexplained deposits More money in your account sounds like a good thing, right? Not always. Large deposits that don't match your regular income pattern trigger lender scrutiny. The concern is that the money could indicate undisclosed debt or unreported income. If you receive a cash gift for your down payment, you'll typically provide what's called a gift letter. This document confirms the money is a gift, not a loan, and identifies who gave it to you. For other large deposits, keep thorough records of where the money came from: - **Sale of a vehicle:** Keep the bill of sale and deposit records - **Tax refund:** Save the IRS documentation - **Insurance payout:** Retain the claim paperwork When in doubt, discuss any unusual deposits with your lender before they happen. ### 7. Skipping the final walkthrough The [final walkthrough](https://www.opendoor.com/articles/home-inspection-checklist-for-buyers), usually scheduled within a day or two of closing, is your last chance to confirm the property's condition. You're checking that any negotiated repairs were completed and that the home is in the same state as when you made your offer. Skipping this step removes your opportunity to catch issues before they become your responsibility. Even if your schedule is tight, make time for the walkthrough. It typically takes less than an hour and can save you from inheriting problems you didn't agree to. ### 8. Causing delays in the closing timeline Closing on a mortgage is time-sensitive. Your interest rate lock has an expiration date, and missing document deadlines or responding slowly to lender requests can push your closing past that window. When your lender or title company reaches out for additional information, respond as quickly as possible. Delays on your end can cascade into larger problems. In some cases, you might have to renegotiate terms or restart parts of the process. Think of it this way: every request from your lender is a step toward getting your keys. The faster you respond, the smoother the path to closing day. ## Things to do before closing on your house While avoiding mistakes matters, taking a few proactive steps can make your closing even smoother. Here's what to focus on in the days leading up to signing: - **Review your **[**closing disclosure**](https://www.opendoor.com/articles/how-to-read-a-closing-disclosure-what-to-look-for)**:** You'll receive this document at least three business days before closing. Compare it to your original loan estimate and flag any discrepancies with your lender right away. - **Secure homeowners insurance:** Your lender will require proof of coverage before closing day. Shop for a policy early and have your insurance agent send documentation directly to your lender. - **Complete your final walkthrough:** Schedule this within a day or two of closing to verify the property's condition and confirm any agreed-upon repairs. - **Gather funds for closing costs:** Confirm the exact amount with your title company, along with acceptable payment methods. Most closings require a wire transfer or cashier's check. Personal checks typically aren't accepted. ## What to expect during the home closing process Closing day can feel intimidating if you don't know what's coming. Understanding the process helps reduce anxiety and ensures you arrive prepared. The [timeline from accepted offer to closing](https://www.opendoor.com/articles/how-long-does-closing-take)[typically takes 41 days](https://www.bankrate.com/mortgages/understanding-the-closing-process/) for financed purchases, though this varies based on loan type and market conditions. During this period, your lender completes underwriting, orders an appraisal, and prepares your loan documents. On closing day itself, you'll sign several key documents: - **The promissory note:** Your promise to repay the loan according to the agreed terms - **The deed of trust or mortgage:** The document that secures the loan against the property - **The closing disclosure:** A final summary of your loan terms, interest rate, and all costs The closing table usually includes you, possibly the seller, your real estate agents, and a representative from the title company or closing attorney. The entire signing process often takes about an hour, though it can feel longer with all the paperwork involved. ## What is a mortgage audit after closing After your closing wraps up, your lender or a third party may conduct what's called a post-closing audit. This is a routine quality-control review to verify that all loan documentation is accurate and compliant with lending regulations. A mortgage audit isn't a sign that something went wrong. It's standard practice in the industry. As long as you provided honest, accurate information throughout the process, you have nothing to worry about. The audit happens behind the scenes and typically doesn't require any action on your part. ## Close on your home with confidence Avoiding common closing mistakes puts you in control of the process. By maintaining financial stability, responding promptly to requests, and staying organized, you can move from approval to keys without unnecessary stress. For buyers who are also selling a current home, the complexity multiplies. Coordinating two transactions with separate timelines, contingencies, and potential delays adds another layer of uncertainty to an already demanding process. This is where having options matters. Some sellers explore cash offers on their current home to gain timeline certainty and reduce the stress of juggling two closings at once. With a cash offer, you can often choose your closing date and skip the unpredictability of traditional showings and negotiations. [Get a cash offer from Opendoor](https://www.opendoor.com/address-entry) [Get your offer](#) ## FAQs about mistakes to avoid when closing on a home ### What is the 7 day closing rule for mortgages? Lenders are required to provide your closing disclosure at least three business days before closing. If any significant changes occur to your loan terms after you receive the disclosure, this waiting period restarts. The "7 day rule" sometimes refers to the combined timing requirements when changes trigger a new waiting period. ### How long does the home closing process typically take? Most home closings take 30 to 45 days from accepted offer to signing. Timelines vary based on loan type, lender efficiency, and local market conditions. Cash purchases can close faster since they don't require mortgage underwriting. ### What happens if a mortgage loan is denied at closing? If your loan is denied at closing, the transaction typically falls through. Depending on your contract terms, you may lose your earnest money deposit. Following the guidance in this article significantly reduces the risk of last-minute denial. ### Can buyers negotiate closing costs before closing day? Yes. Some closing costs are negotiable, including certain lender fees and title services. Buyers can also request seller concessions during contract negotiations to help offset closing expenses. Government fees and taxes, however, are typically fixed and non-negotiable. | **Supported Locations** | | | **Cities / Areas** | **States** | | [Columbia](/sell/columbia_sc), [Columbus](/sell/columbus_oh), [Corpus Christi](/sell/corpus_christi_tx), [Detroit](/sell/detroit_mi), [East Texas](/sell/east_texas), [El Paso](/sell/el_paso), [Florida Panhandle](/sell/florida_panhandle), [Greensboro](/sell/greensboro_nc), [Greenville](/sell/greenville_sc), [Indianapolis](/sell/indianapolis_in), [Kansas City](/sell/kansas_city), [Killeen](/sell/killeen_tx), [Knoxville](/sell/knoxville_tn), [Las Vegas](/sell/las_vegas), [Little Rock](/sell/little_rock_ar), [Louisville](/sell/louisville_in_ky), [Memphis](/sell/memphis_tn), [Miami](/sell/miami_fl), [Milwaukee-Waukesha](/sell/milwaukee_waukesha_wi), [Minneapolis](/sell/minneapolis), [New Orleans](/sell/new_orleans_la), [New York & New Jersey](/sell/new_york_new_jersey), [Northern Colorado](/sell/northern_colorado), [Oklahoma City](/sell/oklahoma_city_ok), [Omaha](/sell/omaha_ne), [Philadelphia](/sell/philadelphia_pa), [Pittsburgh](/sell/pittsburgh_pa), [Portland](/sell/portland), [Prescott](/sell/prescott_az), [Reno](/sell/reno_nv), [Richmond](/sell/richmond_va), [Salt Lake City](/sell/salt_lake_city), [San Antonio](/sell/san_antonio), [Seattle](/sell/seattle_wa), [San Francisco Bay Area](/sell/sf_bay_area), [South Texas](/sell/south_texas), [Southwest Florida](/sell/southwest_fl), [St Louis](/sell/st_louis), [Tucson](/sell/tucson), [Tulsa](/sell/tulsa_ok), [Virginia Beach](/sell/virginia_beach_va), [West Texas](/sell/west_texas), [Western New York](/sell/western_ny) | [Alabama](/sell/alabama_other), [Arkansas](/sell/arkansas_other), [California](/sell/california_other), [Colorado](/sell/colorado_other), [Connecticut](/sell/connecticut_other), [Delaware](/sell/delaware_other), [Georgia](/sell/georgia_other), [Idaho](/sell/idaho_other), [Illinois](/sell/illinois_other), [Indiana](/sell/indiana_other), [Iowa](/sell/iowa_other), [Kansas](/sell/kansas_other), [Kentucky](/sell/kentucky_other), [Louisiana](/sell/louisiana_other), [Maine](/sell/maine_other), [Maryland](/sell/maryland_other), [Massachusetts](/sell/massachusetts_other), [Michigan](/sell/michigan_other), [Minnesota](/sell/minnesota_other), [Mississippi](/sell/mississippi_other), [Missouri](/sell/missouri_other), [Montana](/sell/montana_other), [Nebraska](/sell/nebraska_other), [Nevada](/sell/nevada_other), [New Hampshire](/sell/new_hampshire_other), [New Mexico](/sell/new_mexico_other), [New York](/sell/new_york_other), [North Carolina](/sell/north_carolina_other), [North Dakota](/sell/north_dakota_other), [Ohio](/sell/ohio_other), [Oklahoma](/sell/oklahoma_other), [Oregon](/sell/oregon_other), [Pennsylvania](/sell/pennsylvania_other), [South Carolina](/sell/south_carolina_other), [South Dakota](/sell/south_dakota_other), [Tennessee](/sell/tennessee_other), [Utah](/sell/utah_other), [Vermont](/sell/vermont_other), [Virginia](/sell/virginia_other), [Washington](/sell/washington_other), [West Virginia](/sell/west_virginia_other), [Wisconsin](/sell/wisconsin_other), [Wyoming](/sell/wyoming_other) | --- *Originally published at [https://www.opendoor.com/articles/mistakes-when-closing-a-home](https://www.opendoor.com/articles/mistakes-when-closing-a-home)*