Congratulations, you’ve found your dream home and are under contract! While this is an exciting time, it’s crucial to proceed with caution. Once you’re under contract, certain actions can jeopardize the deal or cause unnecessary stress. In this blog, we’ll discuss some common pitfalls that buyers should avoid when they’ve reached this critical stage in the homebuying process.
- Don’t Make Major Purchases: It may be tempting to start buying new furniture or appliances for your future home, but hold off until after the closing. Making major purchases, especially on credit, can affect your debt-to-income ratio and potentially lead to loan approval issues. Lenders closely monitor your financial activity throughout the homebuying process, so it’s best to keep your finances stable until the deal is finalized.
- Avoid Changing Jobs: While a new job opportunity might seem appealing, changing jobs during the homebuying process can raise red flags for lenders. Your lender approved your mortgage based on your current employment and income stability. Switching jobs could disrupt this stability and lead to delays or even cancellation of the loan. If a job change is unavoidable, consult with your lender first to understand the implications.
- Don’t Skip Home Inspections: Even if the home appears to be in good condition, skipping the inspection is a risky move. A professional home inspection can uncover hidden issues that may not be visible to the untrained eye. These issues could range from minor repairs to major structural problems that could cost you thousands of dollars down the line. By investing in a thorough inspection, you’ll have peace of mind knowing the true condition of the property you’re purchasing.
- Avoid Waiving Contingencies Without Careful Consideration: Contingencies are clauses in the contract that allow you to back out of the deal under certain circumstances, such as a failed inspection or inability to secure financing. While waiving contingencies may make your offer more attractive to sellers, it also exposes you to greater risk. Think carefully before waiving contingencies and consider seeking advice from your real estate agent or attorney to fully understand the implications.
- Don’t Neglect Your Responsibilities: Under the terms of the contract, you have certain responsibilities and deadlines to meet. Failure to fulfill these obligations can result in legal consequences or forfeiture of earnest money. Stay organized and proactive throughout the process, and communicate openly with your real estate agent and lender if you encounter any challenges or delays.
Navigating the homebuying process can be complex, especially when you’re under contract. By avoiding these common pitfalls and staying informed, you can increase your chances of a smooth and successful transaction. Remember to consult with your real estate professionals whenever you have questions or concerns, and always prioritize diligence and caution when making decisions that could impact your home purchase.
