The days leading up to closing on a new home are a whirlwind of paperwork, phone calls, and mounting anticipation. After the lender sends you the Closing Disclosure, which is the final official statement of your loan terms and all the costs involved, you get to do one last important thing before you sign the final papers. This is the final walkthrough. This is not a formality you can skip or rush through. It is your last chance to make sure the home is in the condition you agreed to buy it in.The final walkthrough usually happens 24 to 48 hours before closing. The seller has already moved out, and the house should be empty. This is the time to confirm that everything is still working and that no new problems have appeared since you made your offer. The goal is simple. You want to verify the home is in the same general condition as when you first saw it, and that any agreed-upon repairs from the home inspection have actually been completed.Start with the big picture. Walk around the entire house from the outside. Look at the roof from the ground for any new missing shingles or obvious damage. Check the gutters are still attached and clean. Look at the driveway, walkways, and porch for new cracks that might signal a settling issue. If the seller agreed to repair a fence or trim back overgrown trees, make sure that work is done. Do not assume anything. If you cannot see it clearly, get closer. If you have any doubt, take a picture.Step inside and turn on everything you can. Flip every light switch, including the ones in closets, the garage, and the attic. Turn on the ceiling fans. Run the kitchen faucet and check both hot and cold water. Do the same for every bathroom sink, shower, and bathtub. Flush every toilet at least twice and watch to make sure it flushes fully and refills properly without running. If the seller agreed to replace a broken garbage disposal or a leaky faucet, turn it on and see for yourself that it works.Open and close every window and door, including sliding glass doors. They should slide easily and latch properly. Test the deadbolts on every exterior door. Look at the floor for new stains, scratches, or damage that was not there before. Check the walls for fresh holes or cracks. If the seller moved heavy furniture, they might have bumped a wall or scratched a floor. You are allowed to expect the home to be clean and empty with no new damage.Pay close attention to the mechanical systems. Turn the thermostat to cool and feel whether cold air comes from the vents. Then switch it to heat and check for warm air. You do not need to wait long, just long enough to feel a temperature change. Open the door to the water heater, furnace, and electrical panel. Make sure the seller did not remove any covers or leave any wires exposed. If the inspection report noted a minor issue with the water heater or HVAC system, check to see if the repair tag is on the unit.Look inside the garage. Test the garage door opener. The door should go up and down smoothly and stop immediately if something blocks it. Check that the remotes are left on the counter or hung up for you. If the home has a sump pump in the basement, pour a bucket of water into the pit to make sure the pump kicks on and drains the water.One of the most common mistakes buyers make is forgetting to check for the presence of all appliances that were supposed to stay. The refrigerator, stove, dishwasher, microwave, washer, and dryer should all be there if they were listed in your contract. Open the refrigerator door. Make sure it is clean and running. Do not assume the seller left the ice maker connected. Open the dishwasher and see if it is empty and clean. These items belong to you now.You should also look for items that were supposed to be removed. If the contract says the seller is taking the curtains, they should be gone. If they agreed to leave the window blinds, the blinds should be hanging. If they promised to take the old shed in the backyard, the shed should be empty or gone. Disputes over left-behind junk can delay your closing, so note anything that does not match the contract.If you find a problem, do not panic. Small things like a burnt-out light bulb or a smudge on the wall are not worth delaying the closing. But if you find a significant issue, such as a water leak, a broken appliance, or a missing major item, you have options. The most common approach is to ask the seller to fix it before closing or to give you a credit at closing to cover the repair cost. Your real estate agent can help you handle this. In very rare cases, if the problem is severe, you may be able to postpone closing until the issue is resolved.The final walkthrough is your last chance to say, “This is what I am paying for.“ Do not let the excitement or the stress of closing day rush you through it. Take your time. Bring a small flash light to look into dark corners and behind appliances. Bring your phone to take pictures of any issues you find. If you are unsure about something, ask your real estate agent for their opinion. They have done this many times before.After you finish the walkthrough and everything checks out, you can go to the closing table with confidence. You know the home is ready for you. The final walkthrough gives you peace of mind that the biggest purchase of your life is exactly what you thought it was.
Potentially, yes. Once you have a mortgage, your DTI increases. When you apply for new credit, lenders will see this major financial obligation and may be hesitant to extend additional credit if your DTI is too high, as it suggests a larger portion of your income is already committed to debt repayment.
A float-down option is a feature you can sometimes add to your rate lock for an additional cost. It allows you to “float” your rate down to a lower level one time if market interest rates decrease significantly during your lock period. This provides protection against rate rises with a chance to benefit from a drop.
It can be. While you may get a lower interest rate, you are shifting unsecured debt (like credit cards) to secured debt tied to your home. You risk your home if you cannot pay. There is also a behavioral risk: if you run up credit card debt again after consolidating, you’ll be in a far worse financial position.
While requirements can vary, a general guideline is:
≤ 36% DTI: Excellent. You are in a strong financial position.
36% - 43% DTI: Acceptable to many lenders, though you may need to meet other compensating factors.
43% - 50% DTI: This is often the maximum limit for Qualified Mortgages, and approval may be more challenging.
> 50% DTI: It can be very difficult to get approved, as it indicates a high debt burden.
A larger down payment offers several key benefits:
Lower monthly mortgage payments.
Less interest paid over the life of the loan.
Avoidance of Private Mortgage Insurance (PMI).
Instant equity in your home.
A stronger, more competitive offer in a multiple-bid situation.