Things That May Derail Your Home-Buying Plans At The Last Minute

Shiv Nandan, 28, finalised a property and he was only inches away from becoming the owner. But, something occurred at the last minute that derailed his plans. While this software engineer was in the process of buying the property, he changed his job. The banks from which Nandan was going to get a loan did not take kindly to the fact that he didn't inform the lender about the change.

If you, too, have also finalised a property and are set to seal the deal, make sure that any last-minute change does not derail your plans.

Switching jobs

Like Nandan, not informing your lender about a job change could take you back to where you started. In any case, a change in job while you are in the middle of buying a home is not a great idea. A lender before giving out the funds runs a final check with your employer. In case the lender finds out that you have quit or have been fired, be sure that your home loan application will be cancelled.

Another loan

When making a final decision of buying a property, do not take up another loan. For instance, you want to buy a new car while you buy a home. Not a great idea. This will add your financial burden and disrupt your debt-to-income ratio. If the lender at the time of conducting a final credit check finds out that you have another loan and it will raise your DTI, he will see you at risk and might not approve your home loan. 

Also read: Little Financial Mistakes During Home Buying That Bite Hard

On second thoughts

This could happen with a buyer as well as a seller. What if your seller, who gave you a final yes verbally, got a better deal? He is likely to have second thoughts. This could derail your home buying at the last minute. Or, what if you made a final visit with one of your relatives and they pointed some critical issues with the property? You may have second thoughts, too.

Also read: Don't Do These 5 Things Before You Buy A Home

The final touches

During the final discussion with your seller, there might arise a disagreement over things small and big. Do not consider the purchase complete until you cross this stage.