Things Not To Do Before Closing

Things not to do before closing a sale

You have worked to secure financing for your mortgage, you have a great rate and terms for it. Everything is good, all you must do is wait for advancement of funds.

Sometimes you might suffer a lapse in judgement when it comes to the closing the sale of your home. It is sometimes a stressful time when it comes to these types of events, especially if it is your first time purchasing a home.

A mortgage lender might suggest a simple course of action, however sometimes this is misinterpreted by the buyer. Here is a list of things you should NEVER do in the time between your financing complete date (when everything is setup and looks good) and your closing date (the day the lender advances funds).

Don’t do anything that would reduce your income

When it comes to your employment don’t do anything that would jeopardize your employment or income with your existing employer. Getting a raise is fine but dropping from Full Time to Part Time status is not a good idea. The reduced income will change your debt service ratios on your application and you might not qualify.

Do not close any credit accounts

Even if you realize that you never use a certain credit card, for example, cut it up if you must, but do not cancel that line of credit while you are waiting to close the purchase of your home.

Don’t apply for new credit

if you find yourself at shopping for new furniture and they want you to finance your purchase right now… don’t. By applying for new credit and taking out new credit, you can jeopardize your mortgage. It is best to wait until everything is finalized before going out and buying new furniture for the house.

Do not buy anything with your closing cost. Nothing.

This means not one thing. Yes, you might need a washer and dryer, but wait until you close to order it. Don’t take a salesperson’s word that they’ll just write it up and hold it for you, because somebody will enter it into the store’s computer by mistake. Typically, the lender wants to see you with 1.5% saved up to cover closing costs… this money is used to cover the expense of closing your mortgage.

London Market Update – 2017

Market Update

2017 was a very historic year for the London, Ontario real estate market! For the first time, home sales exceeded 11,000. London and St. Thomas Association of REALTORS (LSTAR) began tracking housing data back in 1978 and this year the number of homes sold was 11,203 and is a 8% increase from 2016.This is a very big achievement for the London and St. Thomas residential real estate market.

 

In 2017, the average sales price across the London and St. Thomas area was $330,037, this was up 18.0% from 2016. By geographic area, London South was $340,793, up 21.7% from 2016. In London North, average home sales price was $407,801, up 18.1% compared to the previous year, while in London East, it was $258,734, an increase of 16.9%.  In St. Thomas, it was $261,481, up by 15.2% over 2016.

 

St. Thomas, Ontario saw a total number of 901 homes sold in 2017, this was up 6.8% from 2016. In 2017, there were a total of 14,301 home listings, down 1.2% from 2016. The trend of high demand with low supply continued into 2017, with inventory (called Active Listings) down 35.6% from 2016.

 

The London and St. Thomas area also achieved a historic six consecutive months of record sales, due to a very robust out-of-town interest. As we saw from the Toronto market, with people looking for a reasonable priced home in the London, Ontario area.

 

2018 will be an interesting year for the London and St Thomas, Ontario area and real estate market. It will also be interesting to see how the new mortgage qualifications tests will have on the overall housing market in Canada. If you are in the process of looking for a house, or starting think about moving, remember to get in touch with a realtor, as they are a professional source for buying or selling a home! They will help guide you along your process.