You’ve found the home. Your offer is accepted. Your loan is in motion. Now comes the final stretch: closing.

But here’s the truth, the closing process is where deals can fall apart if you’re not prepared.

For many buyers, especially first-timers or self-employed borrowers, this phase can feel mysterious and nerve-wracking. The good news? With the right guidance and a little preparation, you can avoid common pitfalls and close smoothly, on time and with confidence.

What Happens During Closing? A Quick Overview

Closing is the final step in the homebuying process. It’s when:

• You sign final loan documents
• Funds are transferred
• The property title is legally transferred to your name

This process typically takes place at a title company or with a notary, depending on your state. Once complete, you get the keys and officially become a homeowner.

Common Mortgage Closing Pitfalls (And How to Avoid Them)

1. Last-Minute Credit Changes

The Mistake: Applying for new credit, financing a car, or racking up a credit card balance right before closing.

Why It’s a Problem: Your lender pulls your credit again right before closing. Any new debt can change your debt-to-income ratio and potentially jeopardize your loan approval.

Avoid It: Don’t apply for new credit, co-sign loans, or make major purchases until after you have the keys in hand.

2. Moving Large Sums Between Bank Accounts

The Mistake: Transferring money between accounts or accepting large deposits without a paper trail.

Why It’s a Problem: Lenders require a consistent and documented financial picture. Sudden, unexplained changes can delay underwriting or require more documentation.

Avoid It: Keep your accounts steady. If you receive gift funds or large deposits, provide full documentation in advance.

3. Missing Closing Documents or Delayed Signatures

The Mistake: Not reviewing your Closing Disclosure (CD) on time or missing document requests from your lender.

Why It’s a Problem: Timing is everything. Delays in signing paperwork or verifying figures can push your closing date back, especially if you’re up against a moving deadline.

Avoid It: Watch for your CD (usually 3 days before closing) and respond quickly to all document requests. Your loan officer and processor are your partners, stay in close contact.

4. Not Having Final Funds Ready

The Mistake: Not transferring your closing funds (down payment and closing costs) in time.

Why It’s a Problem: If funds don’t arrive before the scheduled closing, your transaction could be delayed or canceled.

Avoid It: Know ahead of time how much you need to bring to closing, how to send it (wire transfer, certified check), and when it needs to arrive.

5. Changing Employment or Income

The Mistake: Switching jobs, quitting, or taking unpaid leave during the loan process.

Why It’s a Problem: Lenders verify employment right before closing. A sudden job change could put your approval at risk—even if your income is similar.

Avoid It: If you must make a change, talk to your loan officer first. Don’t assume it won’t matter.

Tips for a Smooth, Stress-Free Closing

✅ Stay Available — Respond quickly to calls, texts, or emails from your lender and title company.

✅ Don’t Make Big Financial Moves — Keep your spending and banking steady until the deal is done.

✅ Ask Questions — If something feels unclear or rushed, speak up. A good mortgage broker (like Shannon!) will walk you through it all.

✅ Double-Check Your Closing Disclosure — Compare the final numbers with your Loan Estimate and ask about anything that seems off.

✅ Schedule Wisely — Try not to close right before a weekend or holiday, when banks and title offices may be closed. Give yourself buffer time for wire transfers and paperwork.

Close With Confidence

Closing on a home should feel exciting, not stressful. By understanding what can go wrong and how to stay ahead of it, you can protect your approval, avoid delays, and start your next chapter with confidence.