What Not to Do When You're Under Contract for a Home

Congratulations on your new venture into homeownership! Being under contract for a new home is a significant milestone, but it's crucial to navigate this phase with caution. While the excitement is understandably high, this is a critical time where attention to detail and restraint can make or break the success of your purchase. Many buyers, swept up in the thrill of nearing homeownership, overlook some essential precautions during this period, leading to financial strains or legal complications. In this article, we delve into common mistakes home buyers should avoid after their offer is accepted and they're officially under contract. By steering clear of these pitfalls, you can ensure a smoother and more joyful transition into your new home.

1. Making Large Purchases

One of the most common traps buyers fall into after going under contract is altering their financial landscape. It might be tempting to purchase new furniture for your new home or a new car to fit into your garage, but large expenditures can drastically affect your credit profile and debt ratios. Lenders keep a close eye on your finances through the end of the closing process. Any significant changes can result in reevaluation of your loan terms, delay your closing, or even cause a lender to revoke your mortgage approval. Maintain financial stability and avoid any major purchases to keep your home buying process on track.

2. Ignoring Lender Requirements

Even after your loan preapproval, your lender may require additional documentation or have queries regarding your finances. Failing to respond promptly or adequately can delay the closing process. Ensure that you're responsive and provide any requested information immediately. Keeping open lines of communication with your lender can prevent misunderstandings and facilitate a smoother transaction. Your attentiveness to these details can be the difference between a delayed and a timely closing.

3. Skipping the Final Walkthrough

The final walkthrough of your future home isn't just a formality—it's your last opportunity to identify any issues that need to be addressed before ownership transfers. Skipping this crucial step can lead to unpleasant surprises when you finally move in. It’s essential to check that the property is in the agreed-upon condition, that all fixtures are intact, and that the seller has completed any agreed-upon repairs. This walkthrough, ideally conducted a day or two before closing, is your safeguard against inheriting problems that should have been resolved beforehand.

Navigating the closing process of buying a home is delicate and requires careful attention to financial and contractual details. By avoiding significant purchases, ensuring thorough final inspections, responding swiftly to your lender, and securing appropriate insurance, you safeguard your interests and help guarantee a smooth transition to homeownership. Remember, the goal is not just to buy a house but to move into your new home with peace, security, and confidence. Happy home buying!