Here’s What NOT To Do After Closing On a House

As anyone who has done it can surely attest, there’s much more to buying a house than simply agreeing on a purchase price with the seller. The days or weeks between signing off on the contract and actually sitting down at the closing table are rife with obstacles and potential setbacks — it’s not called the closing “process” for nothing!

During your closing journey, you’ll probably be up to your ears in advice from both your real estate agent and your mortgage lender. The latter will be especially stringent in making sure you understand that now is definitely not the time to buy a new car or charge a big vacation to your Amex, lest you make a financial move that impedes the underwriter’s ability to finalize your mortgage loan.

But what about after you’ve closed on the home? While it’s true that you can breathe a sigh of relief and not have to second-guess every decision involving your bank account once the keys are in your hands, there are still a few things you should keep in mind after the ink has dried on your closing documents.

With the help of Michael Marino, a Las Vegas-based real estate agent with 17 years of experience, we’ll walk you through what not to do after closing on a house.

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Don’t quit your day job

This one may sound obvious, but unless you have loads of cash squirreled away for a rainy day, you shouldn’t quit your job right after closing on your new home.

Though the inspection fees and other closing costs will have been paid for by now, remember that your shiny new mortgage comes with a regular monthly payment. And while you’ll have to fall pretty far behind to find yourself in danger of foreclosure, late mortgage payments can ding your credit report — as well as your credibility with the mortgage lender.

Many lenders are willing to extend a little wiggle room from time to time if they receive a heads-up that a payment will be late, but right after closing is not the time to call in with a plea for a grace period. Ideally, saving room in your budget to ensure you can make the first several mortgage payments without worry should be part of your pre-purchase gameplan.

Don’t forget to set up autopay

Most lenders will offer the opportunity to set up automatic payments to pull your monthly mortgage payment out of your bank account every month.

Contact your mortgage loan servicer for details about how to do this as soon as possible so you don’t get so swept in your move that you forget to make a payment! Some lenders will have an online portal for you to login and enter your bank details right away, while others might require you to take care of this over the phone. Either way, it beats sending a check via snail mail every time you need to make a payment.

Don’t skip documenting the condition of the house

Even after you’ve ordered all the inspections and navigated the final walkthrough with an eagle eye and a magnifying glass, don’t assume you’ll remember exactly what every corner of your home looked like at the time of move-in.

Whether you’re planning renovations, strategizing furniture arrangement, or just prepping for a fresh coat of paint in the kitchen, there may come a time when you’ll find it helpful to be able to refer back to what the house used to look like.

Snap lots of photos — or better yet, record a video — of every inch of your new home shortly after closing. Even if you don’t end up needing the footage, those early records help preserve the fun memories of when you first moved in and the third bedroom was still bubblegum pink.

Don’t forget to change the locks

“There’s always the little things that come up after closing,” says Marino. “Things like getting your utilities transferred over, forwarding your mail, rekeying your house, and rekeying the mailbox — the first thing I would say is don’t let any of those little things slip through the cracks.”

The thing about house keys (and those for the mailbox, garage, storage shed, and so on) is that no matter how many you may have received at the time of closing, there’s no way for you to know how many copies of those keys may be floating around elsewhere. For the sake of safety and peace of mind, change the locks on your house right away.

Yes, it’s another expense on top of everything you’ve just shelled out, but it’s a minor cost in the scheme of things and an easy task to tick off your “I just moved in, now what?” list.

You can expect to pay between $50 and $200 for a professional locksmith to change your locks depending on the number of locks, according to HomeAdvisor. If you’re feeling confident in your DIY abilities, however, you can always opt to purchase new locks from your local hardware store and install them yourself.

Don’t go crazy with credit

Your final mortgage approval may have been riding on your ability to maintain a steady financial picture, but once you’ve closed on the house, you can spend whatever you want — right?

Technically, sure.

The bank isn’t going to knock on your door and revoke their loan just because you bought an expensive couch in the days following your home purchase, but now is still probably not the time to go wild with big-ticket items. Not only do you have upcoming mortgage payments to keep in mind, it’s also worth giving yourself some time to settle into the home and determine what items you do and don’t need before over-spending on luxury furniture.

It’s entirely possible that the pricey vintage armoire you’ve been eyeing for the guest bedroom isn’t going to be a great fit once you move in the bed, nightstands, and corner desk you already own. And what if you decide the formal dining room is actually perfect for a home gym instead of a stuffy sit-down space, but you’ve already committed to a 10-person table purchase?

In other words, even though you’re no longer in danger of losing the ability to buy your home with a poorly-timed purchase, consider giving your lines of credit a bit of breathing room nonetheless.

Don’t necessarily start renovating (yet!)

Along similar lines, maybe hold off on your grand plans for renovation until you and the house have had a chance to get properly acquainted.

Before you draw up plans and start knocking down walls, you should aim to spend some time living in the home to see if some of the current features are sweeter than you think. For example, you might find that the upstairs bedroom you were planning on turning into an office has a glorious view of the sunrise that you’d miss out on if you just used it as a workspace.

Upon further inspection, perhaps you’ll come to see your oddly shaped island as an amazing spot for entertaining, or that knocking out a wall to add a shower to the downstairs half-bath isn’t worth losing your kitchen pantry space after all.

That being said, there are certain projects Marino does recommend taking care of right away.

“Some things you should just do before you move in,” he explains. “If, for example, you move everything in, it’s very unlikely you’re going to move your furniture out later to redo your floors.”

Marino advises his clients to handle painting and flooring projects right away — ideally before moving anything in — so that they’re completed and out of the way before trying to set up the rest of the house.

“In fact, maybe line up your vendors a couple of weeks in advance so that as soon as you get your keys [after closing] you can give them right to your contractor and get it done,” says Marino. “Some contractors are booked up right now, so we advise clients to plan that right away.”

Don’t forget to store paperwork with care

In the hectic shuffle of moving in and getting situated, it’s easy to let your mortgage and closing documents get swept aside into a pile that you’ll “deal with later.”

The only thing is, if you one day need to check on your interest rate or how much you’re paying for mortgage insurance, you’ll want to know where those documents are located. Instead of stuffing your closing paperwork in a box in a closet, consider taking the time to digitize them before storing the hard copies somewhere safe and locatable.

In the collective shift toward paperless transactions, your lender and closing attorney may well have already provided you with digital copies of your mortgage and closing documents, but if not — it’s worth scanning those pages and storing them on your computer. If you don’t own a printer/scanner combo, apps like Adobe Scan can make quick work of preserving important paperwork.

Other important documents to keep handy include your homeowner’s insurance policy and any home warranty documents that you obtained at closing. In case anything goes wrong, you’ll want to refer back to these to know who to contact to make things right.

Don’t ignore your neighbors

Not everyone wants to become best friends with their neighbors — and that’s totally fine! — but it can’t hurt to briefly introduce yourself. A quick hello can be enough to establish common ground and help you feel like part of the community.

If you feel comfortable, it can be helpful to exchange contact information with a neighbor or two just in case you have questions about neighborhood events or need someone to keep an eye on your home while you’re out of town.

Don’t sleep on home maintenance

Just because your home may have been move-in ready at the time of closing, doesn’t mean you should kick back and relax indefinitely — stay on top of things by creating a maintenance plan.

From keeping your appliances in tip-top shape to maintaining a smoothly operating HVAC system, regular home maintenance performed on a monthly, quarterly, or yearly basis can go a long way in helping to reduce unexpected expenses.

And if you have a yard, don’t forget about landscaping! Your agent can likely offer recommendations for landscapers, contractors, and other handyperson services if you’re not sure where to start.

(Or, ask one of those neighbors you’ve just met!)

Don’t leave the windows bare

Window treatments are just as much a personal preference as anything else around your home, but if you’ve just closed on a house, don’t forget to do something with those windows.

Whether you hang inexpensive blinds, electric shades, lavish curtains, or your great-grandmother’s hand-sewn drapes, window coverings give you some privacy and make it clear to passersby that someone lives here now.

Don’t forget all the pesky admin

Moving is always accompanied by administrative tasks that are easy to let slide until it’s inconveniently late.

So, don’t wait to update your driver’s license or other identification until you’ve been pulled over for speeding and the officer asks if your address is current — get that taken care of right away.

Other life admin to keep in mind after moving may include:

• Forwarding mail
• Updating credit card and banking information
• Changing over utilities and other commodities:
  • Water
  • Power
  • Internet and TV
  • Subscription services
  • Mobile phone
• Canceling or rescheduling services that may no longer be available or applicable, depending on how far you’ve moved:
  • Gym membership
  • Grocery delivery
  • Storage space

Don’t rush into refinancing

With mortgage interest rates perpetually changing, it can be tempting to explore refinancing options as soon as you catch wind of a lower rate than what you’re paying on your current loan.

However, Marino cautions against rushing into a refi.

“Something I see buyers doing — maybe not right away but perhaps within a year of closing — that I wouldn’t personally do is they’ll go into a refinance or pull out some equity. To me, those aren’t really sound financial decisions because if they go ahead and refinance just to shave off a quarter of a point but they don’t factor in that the cost of that refi was $4,000, that’s not a smart idea,” he explains.

Similarly, Marino advises against using home equity to make unrelated purchases.

“People sometimes, you know, they buy a house for $400,000 and then a year later it’s worth $460,000. And they’ll take out a home equity line of credit for $30,000 and maybe go buy a car a little irresponsibly.”

If you are ever unsure about a decision to refinance, work through your options with a trusted financial advisor.

In the end? It’s your house

All advice aside, remember that once you’ve closed on a house, it’s yours! And you’re free to spend money on it however you wish. As long as you’ve ticked off the legal and administrative duties, don’t hesitate to move forward as you see fit.

Remember that a great agent is always your best partner in finding that perfect house, and most are happy to help with advice and recommendations long after you’ve finished at the closing table.

Enjoy your new home!

Header Image Source: (Cytonn Photography / Unsplash)