11 things not to do after closing on a house
It's important to avoid certain actions after closing on a house because they could have a negative impact on the transaction and your ability to finalize the the details of the mortgage loan.
You've just closed on your new house—congratulations! The keys are in your hand, and the possibilities for creating your dream home are endless. But as you prepare to move in and embark on your new chapter, remember that closing is just the beginning. There are a lot of things to do after closing—and, even more importantly, a list of things you should NOT do.
Let’s explore some of the potential pitfalls that can arise after signing on the dotted line, and what not to do after closing on a house.
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After money changes hands at closing, it’s easy to fall into the trap of thinking that the financial aspect of homebuying is behind you. Many new homeowners turn their attention to the next phase of their journey: furnishing their new home. Unfortunately, this can lead to hasty financial decisions that strain your budget and impact your long-term financial goals. With that in mind, try to avoid these financial missteps:
The urge to personalize your new space with renovations or splurge on new furniture is understandable. However, the closing process likely involved a significant down payment and closing costs. This—combined with the upcoming moving expenses—can leave your finances stretched thin. Unfortunately, unexpected issues can arise with any house. You’ll want to have a cushion to address them without jeopardizing your financial stability.
Tip: Prioritize creating a realistic budget that allocates funds for essential expenses, potential moving costs, and an emergency repair fund.
Your credit score plays a crucial role in securing loans, including potential home equity lines of credit or refinancing options down the road. While you might not be thinking that far ahead yet, lenders certainly are. Making significant changes that affect your credit score right after closing can raise red flags for lenders. Splurging on credit-backed purchases can send up red flags!
Tip: Avoid large purchases, co-signing for loans for others, or applying for new credit cards, and maintain your current spending habits.
While the excitement of closing may overshadow it, remember that closing costs are separate from your down payment. These can include loan origination fees, appraisal fees, title insurance, and other expenses. If you don’t budget, they can come as a shock. Work with your lender ahead of time to make sure they’re factored in and not a surprise.
Tip: Factor these closing costs into your overall moving and initial homeownership budget to avoid any unexpected financial strain as you settle into your new home.
Use our home sale calculator to estimate your net proceeds.
Closing the deal and getting the keys doesn't mean your security checklist is complete. Even the most move-in ready home still needs work before you can call it your own. Specifically, you want to make sure you’re safe, secure, and knowledgeable about the home itself. Here are some crucial steps to ensure you feel at home in your new home:
You never know how many copies of keys previous owners might’ve had. To ensure your peace of mind, prioritize changing the locks on all exterior doors, including the garage and any outbuildings. If there are any damaged or dilapidated locks or latches, replace them before you move in. This is also a great time to look at upgrading the security of your home.
Tip: There are two main options: rekeying existing locks—which involves replacing the internal components to require new keys—or installing entirely new locksets.
The paperwork you received during closing holds significant value. This includes your official house title, closing documents, warranties for appliances or systems, and any inspection reports. While you might not need this information right now, it can become important in the future. Your mortgage lender will have copies; however, it’s a smart idea to have your own copies readily available for things like insurance claims or when making improvements to your home.
Tip: Create a safe and designated place to store these documents, such as a fireproof lockbox or a secure online document storage service.
The home inspection conducted before closing likely identified some minor (or major) issues. While negotiations may have addressed some concerns, it's important not to neglect these findings entirely. Make an ordered list of the work that needs to be done from urgent to less important. Prioritizing these repairs can save you money and headaches down the road.
Tip: Schedule appointments with qualified contractors to address the identified issues, especially those related to safety or potential for future problems.
Part of settling into a new home involves making sure everything functions smoothly. Depending on your situation, that could mean going through a laundry list of changeovers and new account setups. It’s easy to let these things fall by the wayside as you focus on getting moved in, unpacked, and situated. Here are a couple of must-do items that can’t be forgotten about:
Before move-in day, make sure your utilities and other services specific to your new address are confirmed and accounted for. Some of the major services to consider include:
Tip: make a list of any additional services you’ll use, such as security systems, lawn care, or home deliveries, and update their contact information.
Owning a home comes with new responsibilities, and homeowner's insurance is crucial for protecting your investment. This insurance safeguards your property against damage from fire, theft, and other covered perils. Having proper insurance coverage provides peace of mind and protects you financially in case of unforeseen circumstances. If you didn’t set up a policy as part of mortgage underwriting, now’s the time to do it.
Tip: Contact your current insurance provider or shop around for quotes to find a policy that meets your needs and budget.
There’s a never-ending list of tasks when it comes to moving, and it’s easy to get lost in that list. Don’t forget to tell people you’ve moved! This is especially important if you have friends and family out of state, or who you might not be in regular contact with. Updating your address gives people a chance to celebrate with you—and they’ll always know where to find you in the future.
Thanks to social media, it’s easier than ever to let people know that you’ve moved. Put up a post that announces your change of address—or make a list of need-to-know people and send them a direct message with your new information. If you prefer an old-school approach, you can always send out change of address letters.
Tip: Have a housewarming party! It’s a chance to give everyone your new address and unwind after a stressful move.
A friendly introduction to your neighbors can foster a sense of belonging and provide a support system. Bake some cookies, introduce yourself, and exchange contact information. Getting to know your neighbors right after you move in can lay the groundwork for a positive experience in your new home.
Tip: Look for common ground to connect on, such as what you do for work, any pets you have, or shared interests. A small chat can go a long way!
If you’ve moved to a brand-new area, one of the best things you can do is get out there and explore the local community. Getting involved in your community allows you to meet new people, learn about local happenings, and potentially even find friends. Plus, it’ll help you get a sense of what’s nearby your new abode.
Tip: Attend an HOA or community meeting if you can. It’s a great way to get your finger on the pulse of what’s happening in your immediate area.
Buying a home, moving, and getting settled in area stressful—even when everything goes according to plan. Don’t forget to take care of your physical and mental well-being! Take a day or two off of work (if you can) and be sure to treat yourself to something that makes you relaxed, happy, and content—even if it’s just an opportunity to lounge.
Remember: there’s always something you could be doing to improve your home. The key is to moderate and pace yourself, so you enjoy the home you’re working so hard to make your own.
Getting the keys to your new home is an exhilarating feeling. But it’s also important to realize that the closing process is only just the beginning of your new adventure. There’s a lot to do—and a lot you shouldn’t do after closing on a home. Prioritize the important stuff, avoid the missteps, and stay focused (and excited) on making your home everything you want it to be. In time, it’ll be everything you imagined when you first walked through the front door.
Use our home sale calculator to estimate your net proceeds.
Here are some more answers to your questions about what not to do after closing.
Closing on a house is the final step in the homebuying process where the buyer and seller sign all the necessary documents and complete the transaction. After closing, the buyer takes possession of the property and becomes the legal owner. It's imperative to avoid doing certain things after closing on a house because these actions could delay your transaction
In certain situations, a mortgage loan to be denied after closing. For example, if there is a major change in the borrower's financial situation or credit score, the lender may be able to withdraw the loan offer before the transaction is complete. That's why it's important not to do certain things after closing, to ensure you get a mortgage with the agreed upon terms.
Yes, you can buy furniture after closing, but it's important to do so responsibly and within your means. That means paying in cash when you're able, since using a credit card could mean a change to your credit score or DTI. Above all, make sure your furniture purchases within your budget and won't put a strain on your finances.
You should wait at least a few months after closing before making any major purchases or changes to the home. This allows you time to settle into the property and assess your financial situation. It's also important to keep your debt-to-income ratio in check and avoid taking on too much debt too quickly.
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