10 Things Buyers Should Never Do Before Closing

Buying a home is exciting, but there are things buyers should never do before closing if they want to keep their deal alive, protect their financing, and actually get the keys on time. One wrong move—like changing jobs, opening new credit, or sending earnest money to the wrong person—can delay the loan, increase costs, or even cancel the closing altogether.

This guide breaks down the top mistakes to avoid, why they matter, and how to stay on track from contract to closing day. If you're buying a home soon, or you're an agent educating clients, consider this your blueprint to a smoother, safer transaction. Stay aware, stay prepared, and let the process work for you—not against you.

Let’s jump into the 10 things buyers should never do before closing—and how to avoid the deal-killers that catch people off guard.

Before We Begin: Why These Steps Matter

Before we dive into the list, here’s the bottom line: everything you do between contract and closing impacts your approval, your timeline, and whether you get the keys on schedule. The points below aren’t hypothetical—they’re the most common reasons deals get delayed or denied. When you know what to avoid, you stay in control and protect your path to closing.

With that in mind, let’s move straight into the first thing buyers should never do before closing—and why it matters from day one.

1. Never Make Big Purchases That Change Your Debt

Major Spending Can Cancel Your Loan

Opening new credit, financing a car, or buying expensive furniture before closing can raise your debt-to-income ratio. Even if you’ve been pre-approved, lenders often pull a second credit check before funding. If they find new debt, your approval can be delayed, suspended, or revoked. Hold off on “celebration spending” until after move-in.

Why Lenders Recheck Credit Before Closing

It’s standard practice for lenders to verify financial stability near the end of the transaction. They want to ensure nothing has changed from your original application. If your financial picture shifts, they’re required to reassess your qualification for the loan. Stability equals confidence—and confidence leads to funded loans.

2. Never Change Jobs or Income Sources Without Lender Approval

Career Changes Can Pause or Reverse Approval

Even if you’re moving to a better job with higher pay, changing employers during the loan process can disrupt underwriting. Lenders need recent pay stubs, employment verification, and sometimes 30–60 days of income history before they feel confident moving forward. A sudden change forces them to re-evaluate your file, slowing everything down.

When Career Shifts Are高-Risk

Transitions that trigger the most delays include switching industries, going from salaried to commission-based income, becoming self-employed, or starting contract work. These changes introduce uncertainty, and underwriting reacts by pressing pause. Always talk to your lender before making a professional leap.

When It Might Be Safe

If the job is in the same field, with equal or better pay, and includes clear documentation from the employer, approval may continue without interruption. But even then, clearing it with your lender first is the smartest move. Communication protects momentum.

3. Never Give Earnest Money Directly to a Seller

Why Direct Payments Are High Risk

When earnest money goes straight to a seller—especially in a For Sale by Owner (FSBO) situation—there’s no protection guaranteeing those funds if the deal falls through. Without a neutral third party, the money can be spent, disputed, or delayed in return. Recovering it may require legal action or extended negotiations.

Use a Neutral, Protective Holding Account

The safest move is to place earnest money with an attorney, escrow company, title company, or licensed real estate brokerage. These parties follow strict regulations, provide documentation, and secure your deposit until closing. Neutral control protects both sides and keeps the transaction professional.

Get the Terms in Writing

Before any money changes hands, the purchase agreement should clearly state:
• Who holds the deposit
• When it is released
• What happens if inspection issues arise
• How financing or appraisal problems affect the refund
• What conditions allow the buyer to walk away with funds returned
Clarity now prevents conflict later.

4. Never Let Emotions Drive Your Decisions

Don’t Let Excitement Overshadow Strategy

Falling in love with a home is normal, but emotional decision-making can lead to overspending, ignoring inspection issues, or forcing negotiations that don’t benefit you. A dream home should still make financial sense. Stay focused on value, repairs, resale potential, and long-term affordability—not just curb appeal or staging.

Cosmetic vs. Costly Problems

Some issues aren’t deal-breakers. Outdated paint colors, worn carpet, and old hardware are easy fixes later. But major issues—like foundation movement, roof damage, plumbing defects, or electrical hazards—deserve attention. Cosmetic concerns should never distract you from structural red flags that could drain your wallet post-closing.

Balance Emotion With Due Diligence

Let inspections, comparable sales, repair estimates, and resale value guide your choices. The strongest buyers are informed buyers—those who appreciate the home emotionally but evaluate it logically. When your heart and your numbers agree, that’s when you move forward confidently.

5. Never Forget to Activate Utilities Before Move-In

Schedule Setup 3–7 Days Before Closing

Utilities do not activate instantly, and many companies require advance notice to transfer or start service. If you wait until move-in day, you may arrive to a home without electricity, water, gas, or internet. Scheduling setup ahead of time keeps inspections, walk-throughs, and the first night in your new home stress-free.

Services to Set Up in Advance

Contact providers early for the following:
• Electric or power company
• Water and sewer service
• Gas or propane (if applicable)
• Trash and recycling collection
• Internet and Wi-Fi installation
• Security system activation (optional but recommended)

Don’t Forget to Cancel at Your Current Residence

Buyers often overlook the simple task of closing out previous accounts. This can lead to extra billing cycles or unnecessary charges. Make a quick checklist with end dates for current service and start dates for the new address to ensure a seamless transition.

6. Never Skip Lining Up Homeowners Insurance

Lenders Require Proof Before Closing

Homeowners insurance isn’t optional when financing a property. Your lender must verify active coverage before they can release funds for the loan. If your insurance isn’t set up or the documents aren’t delivered in time, closing will be delayed. In some situations, delays can push you past contract deadlines and create avoidable complications.

Start Early, Especially in High-Risk Areas

Certain locations—like coastal, flood-prone, wildfire, or storm zones—may require specialized policies or extended underwriting. These approvals can take longer than standard homeowner policies. Request quotes early, compare coverage, and confirm that your lender receives what they need well before closing day.

Ask for Documentation Up Front

Before closing, make sure you receive:
• Proof of active coverage (declarations page)
• Contact information for your insurance agent
• Premium and coverage breakdown for your lender
• Flood or hazard policy certificates (if required)
A small preparation step here prevents big delays later.

7. Never Get Too Personal With the Seller

Keep It Professional, Not Personal

You can be friendly with the seller, but becoming overly personal can complicate negotiations. Casual comments about décor, condition, or improvements can be misinterpreted and shift the tone of the deal. A real estate transaction works best when boundaries are clear and communication stays focused on the property and terms.

Focus on the Business Side of the Transaction

When emotions get involved, people can take things personally—especially during repairs, appraisal negotiations, or final walk-throughs. Protect the relationship by communicating through your agent when possible. They’re trained to manage details, avoid tension, and keep both sides aligned on the goal: a successful closing.

Stay Friendly, Stay Strategic

Kindness opens doors, but strategy gets them closed. Be respectful, be professional, and let your agent handle sensitive topics. Clear expectations now help you step into your new home later—without unnecessary conflict or stress.

8. Never Panic If the Appraisal Comes In Low

You Still Have Options When Values Don’t Match

A low appraisal doesn’t automatically end the deal. It simply means the appraised value came in lower than the agreed sales price, and lenders will only lend based on the lower number. While this can feel like a setback, it often opens the door to productive negotiation—not defeat.

Possible Solutions to a Low Appraisal

There are several ways to move forward:
• Ask the seller to reduce the price
• Offer to split the difference with the seller
• Increase your down payment if the home is worth it to you
• Request repairs or credits based on issues found
• Challenge the appraisal with comparables or missing data

Stay Calm, Stay Strategic

Approach the situation with clarity, not emotion. Lean on your agent and lender to help you evaluate options, negotiate adjustments, and determine the best path forward. Buyers who respond strategically often come out of appraisal issues with a better deal than before.

9. Never Try to Manage the Process Alone

Your Agent Tracks the Details That Keep the Deal Moving

A real estate transaction has a lot of moving parts—lenders, inspectors, appraisers, title companies, insurance providers, and the seller’s side. Your agent coordinates with all of them, monitors deadlines, and keeps paperwork flowing. Trying to manage it yourself increases the risk of missed dates, lost communication, or avoidable complications.

They’re Your Advocate and Your Buffer

Your agent’s job is to protect your interests, guide you through negotiations, and keep the contract on track. When emotions rise or negotiations feel tense, they step in with clarity and strategy. This keeps the transaction professional and reduces the chances of miscommunication with the seller.

Trust the System Built to Protect You

Lean into the support available to you. Use your agent for guidance, documentation, negotiations, and communication. The more complex the transaction, the more important it is to have someone experienced managing the details. You don’t need to carry the process alone.

10. Never Ignore the Paperwork Your Lender Requests

Missing Documents Cause Delays

Lenders operate on documentation, and every missing form slows down underwriting. When they request pay stubs, bank statements, letters of explanation, insurance details, or signatures, time matters. The faster you respond, the more confident underwriting becomes—and the smoother your path to closing.

This Is How Closings Fall Apart

Long delays invite complications. Sellers get frustrated, rate locks expire, and contract extensions aren’t always granted. Stay ahead of the process by responding quickly and asking questions whenever something isn’t clear. A proactive approach prevents avoidable setbacks.

Think of It as a Final Runway Check

Every document brings you closer to the front door of your new home. From underwriting approval to the closing disclosure, each signed page keeps momentum alive. Stay engaged, stay responsive, and you’ll be celebrating move-in day sooner than you think.

A Smooth Closing Starts With Smart Choices

Every real estate transaction has variables, but most major issues are preventable. By avoiding new debt, delaying big financial changes, staying professional with the seller, securing insurance early, and responding quickly to your lender, you protect your investment and keep the closing date on track.

Your Best Advantage Is Awareness

Knowing the things buyers should never do before closing puts you ahead of costly mistakes that derail deals. Share this guidance with anyone preparing to buy a home. Whether you’re a buyer or a real estate professional, insight like this creates confidence—and confidence leads to keys in your hand, not delays and disappointment.

Next Steps to Stay on Track

Use this page as a checklist, talk to your agent before making changes, and keep communication open with your lender. A prepared buyer is a successful buyer—one who gets to celebrate closing day instead of surviving it.

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