So, you managed to strike a deal with the seller on a house you have been eyeing for a while. Congratulations, you are nearly there. However, there is so much that could happen between now and actually owning the property that could deprive you of the house of your dreams. Let us take a look at three mistakes you should avoid when closing the deal on a house you are looking to buy.
Failing to stick to the timeline
The purchase agreement has clauses that define precisely what steps are to be completed at specific times during the course of the transaction. Whether it is inspections or appraisals, every aspect of the deal will need to be addressed within an assigned time period. You need to stick to all these deadlines because if you fail, you may well be found in violation of the contract and risk losing the deal altogether.
Failing to follow up with stakeholders
It is important to note that the buyer and seller are not the only parties involved in the transaction who need to stick to deadlines. Other stakeholders include home inspectors and mortgage loan officers, who must also abide by certain deadlines. As a buyer, you must not take any of these for granted and be sure to follow up as deadlines approach. Needless to say, you must be courteous and polite as you so do.
Going berserk with big purchases during escrow period
This may not occur to some homebuyers, but you must avoid making big purchases following the receipt of a pre-approval. Lenders initiate an underwriting process after receiving an application for loan, whereby a buyer’s finances are vetted to make sure they can duly make their mortgage payments. Buying something as expensive as a new car or a gaming computer during this period can adversely impact one’s debt-to-income ratio. Be sure to err on the side of caution and give your finances a stable and healthy look.
It is favorable to be in the closing stages of a house buying process, but since there are no guarantees in life it is best to avoid these three mistakes to improve your chances. You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
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