Closing day should feel like the reward for all the hard work you’ve put into finding and financing your dream property. You’ve toured countless houses, compared mortgage options, and navigated negotiations. The finish line is in sight. But for many buyers, this moment of celebration can suddenly turn stressful when unexpected issues appear just days before the deal is finalized.
The reality is that even small changes to your financial or employment situation can trigger big problems. Lenders and lawyers stay watchful right up until the very last moment, double-checking your income, your debts, and your ability to meet conditions. Buyers often underestimate how fragile the process is at this stage, which is why being cautious is crucial.
In fact, most closing delays are caused by five common mistakes: switching jobs, making large credit purchases, missing payments, moving money between accounts without explanation, and failing to provide documents when asked. Each of these actions may seem minor on its own, but together they can cause approval delays or even derail the transaction altogether.
Why Last-Minute Mistakes Can Jeopardize Your Home Closing
Buying a home in Canada is not finalized until funds are transferred and keys are handed over. Until then, your lender and your lawyer remain cautious. They are protecting not only their own interests but also ensuring the deal is legally sound. Understanding why this period is so delicate helps explain why last-minute mistakes matter so much.
When you reach this stage, think of the process as being under review one final time. Lenders want to make sure nothing has changed since your initial approval, and lawyers are checking that all conditions are satisfied. If even one element is out of place, the transaction can be put on hold.
Lender Re-Checks Before Funding
Lenders don’t just take your word for it. They re-verify your employment, review your debts, and may even pull your credit report again. If something looks different from the file they originally approved, questions will be raised, and approvals can be delayed.
Legal and Financial Deadlines
Your lawyer has strict timelines to meet, from registering the property to ensuring closing costs are properly documented. Any delay in documentation or unexplained bank activity can cause a ripple effect that stalls the process.
The 5 Biggest Mistakes to Avoid Before Closing on a Home
Closing day may feel like it is already locked in, but this stage is when the smallest misstep can ripple into a major delay. These mistakes are not just common—they are the very things lenders are trained to look for in the days leading up to funding. Being aware of them gives you the power to avoid last-minute stress.
Take a closer look at the top mistakes buyers make before closing. Each one comes with consequences that can put your purchase at risk if not managed carefully.
1. Changing Jobs or Employment Status
Changing your job may appear harmless, but it disrupts the sense of financial stability that lenders rely on. Even if you believe the new role is a promotion, lenders see any shift in employment as risk.
- Stability matters: Lenders want to confirm steady income from the same employer.
- Delays possible: A new contract may force underwriters to restart the approval process.
- Best practice: Wait until after your mortgage closes before changing jobs.
- Example: A buyer who switched to contract work just before closing often had to wait weeks for reassessment, delaying possession.
2. Making Large Purchases on Credit
That new furniture set or car lease can feel urgent when you are preparing to move, but it creates red flags.
- Debt-to-income ratio: Large purchases raise your debt levels, which directly affects mortgage approval.
- Credit score impact: New credit inquiries or balances can lower your score at the worst time.
- Recommendation: Hold off on any major spending until your keys are in hand.
- Example: Even a financed $3,000 appliance package can alter your financial ratios enough to trigger lender review.
3. Missing or Delaying Payments
Your financial history is under a microscope right up until the final wire transfer. A single missed or late bill can look like a pattern of unreliability.
- Credit score drop: Late payments may instantly reduce your score.
- Lender red flag: Even one mistake can cause lenders to reconsider your file.
- Avoidance: Pay every bill on time, even smaller utilities, until closing is complete.
- Example: A late phone bill payment was enough to push one buyer’s closing into a week-long delay while the lender re-verified credit.
4. Moving Money Between Accounts Without Explanation
Large or sudden transfers attract questions that must be answered before funds are released.
- Source of funds: Lenders require proof for down payment money.
- Documentation delays: If you cannot provide clear records, the process stalls.
- Tip: Keep funds steady in one account until after closing.
- Example: A down payment transferred through multiple accounts took days of added paperwork to clear.
5. Ignoring Lender Requests for Documents
Silence or delays in providing paperwork can jeopardize everything.
- Time sensitivity: Lenders and lawyers operate under strict deadlines.
- Risk of cancellation: Missing documents may lead to postponed or failed closings.
- Solution: Stay responsive and submit everything as soon as requested.
- Example: A buyer who ignored a request for updated pay stubs almost lost their deal when the lender froze funding.
How to Protect Your Home Closing
Avoiding last-minute closing problems isn’t complicated. It comes down to being careful, steady, and responsive throughout the process. The fewer changes you make, the less chance there is of upsetting the balance.
Keep Your Financial Picture Steady
Stick with your current job, avoid applying for new credit, and resist making large purchases until after closing. Keep your accounts simple and predictable.
Communicate with Your Broker and Lender
If you need to move money or anticipate a change, talk to your mortgage broker before taking action. Experienced professionals like Pradip Maheshvari can advise on the safest timing and strategy.
Be Prepared with Documentation
Keep all important documents organized and ready. Pay stubs, tax records, and bank statements are often requested in the final days before closing.
Need guidance before closing on your home? Contact Pradip Maheshvari today to ensure a smooth, stress-free closing.
FAQs
Can I change jobs after my mortgage is approved?
It’s best to wait until after closing. Even if the new job pays more, lenders prefer stability during the mortgage process.
What happens if my credit score drops before closing?
A lower credit score may cause lenders to add conditions, change your rate, or in some cases withdraw approval. Protect your score until the deal is finalized.
Do lenders check bank accounts again before closing?
Yes, lenders may request updated statements to confirm your down payment funds and overall financial stability.
How soon before closing should I avoid big purchases?
From the moment your offer is accepted until closing day, hold off on major purchases. Even small changes can alter your financial picture.
Conclusion
Closing on a home is the final chapter of the buying journey. After months of preparation, the last thing you want is to stumble in the final days because of preventable mistakes.
The five issues that most often cause trouble are changing jobs, large credit purchases, missed payments, unexplained transfers, and ignoring lender requests, all within your control. By keeping things steady, you minimize risk and maximize your chances of a seamless handover.
Remember that the closing process is not just about you. Lenders, lawyers, and brokers are all coordinating to make sure the transaction goes smoothly. If you stay consistent, responsive, and transparent, there’s little reason for delays.
Work closely with a trusted mortgage broker like Pradip Maheshvari, who understands how to anticipate and prevent last-minute issues. With the right approach, you’ll step confidently into your new home without unnecessary stress.
No comment yet, add your voice below!