A home purchase isn’t complete until you make it to the closing. Until then, the transaction can fall apart for many reasons. –House Logic
Schedule an appointment with a trusted inspector immediately if your contract requires you to have a home inspection. Home inspection is recommended whether it is stated in the contract or not. In South Padre Island area, the environment is corrosive and this results to unique issues to our area. After the inspection, issues should be negotiated with the seller to work on repairs to make your property a better investment.
Here are five tips for avoiding mistakes that cause a home sale to crater.
- Be truthful on your mortgage application
Lenders have become more diligent in authenticating the information you submit to them; skipping the debts and fudging your income will surely be found out. Giving inaccurate or wrong information on your application will only give you a higher chance of getting denied for a loan. Not to mention that intentionally providing false information on a mortgage application is considered a crime.
- Hold off on big purchases
Before closing, lenders double-check the buyers’ credit to ensure that their financial condition has not weakened. Opening a new credit card, taking out new loans, or depleted savings can make your credit score drop and may result to lenders changing their minds.
It is really tempting to purchase new pieces of furniture and other items for your new home but it is recommended that you do such purchases after the closing.
- Keep your job
Planning to quit your job? Do it after the home closing. Quitting or changing of jobs before the purchase is closed will only give the lenders a reason to refuse your home loan.
- Meet contingencies
Contingencies should be satisfied before closing the purchase. If the contract requires financing, provide all the information that the lender needs as soon as possible. If additional funds are needed into escrow, deposit promptly. If a home inspection is needed in 10 days, contact your inspector immediately.
- Consider deadlines immovable
Always be sure that your funds are available a week ahead before the closing to get rid of any delays. If a certified check is needed to close the purchase, secure it from the bank a day or two before closing, not the same day. Not meeting the deadlines is a big NO. Ask your real estate agents on things to be accomplished so you can do it ahead of time.