Roadblocks to Avoid When Closing on a Home

Your offer has been accepted and you are under contract! Yes, you are finally getting into the home of your dreams, but did you know there are some roadblocks that can delay or even halt closing on the home completely? These are things to remember when completing the home buying process.

Inspection Discoveries and Negotiations

I always recommend a home inspection and repaire procedure to my buyers and once a home inspection has been completed then we can negoatiate with the seller on home repairs that need to be complete before the purchase of the home is completed. Inspections often bring light to problems that are not seen by the naked eye. If the seller and the buyer cannot come together to determine the repairs, the deal may be off.

Appraisal

Lenders usually require that a home appraises for a minimum of the loan amount. There are times in which a home does not appraise. It is up to the buyer to determine if they have the funds available to make up the difference between the appraisal and the loan amount. If the buyer cannot afford to do that and the seller is not willing to renegotiate the sales price of the home, then the deal may be off due to the buyer not being able to obtain the financing need.

Quitting Your Job or Finding a New One

While taking on a new job is usually not a bad thing, especially when you are going to make more money, this can cause an issue with your lender. Mortgage lenders want to show stability in your work history and holding the same job for an extended period of time helps. Also, you don't want to quit your job and not have the funds available to pay your impending mortgage.

Not Paying Your Bills on Time OR Adding New Bills

Make sure you pay your bills on time! Not paying your bills on tim can hurt your credit quickly! The halting of paying bills or even paying your bills late can hurt your credit score. Other things that can hurt your credit score or change your debt-to-income ration is co-signing a loan for a friend or family member while in the process of purchasing a home. Also, please do not go out and purchase big ticket items such as a new vehicle, furniture, or any other large item that may affect your amount in savings or your debt.

Ignoring Your Lender

Don't ignore your lender! They will be in contact with you for any questions they have. Pick up the phone, call them back! If they don't have the answers they need, the paperwork will stop and the mortgage approval will not occur.

Roadblocks may occur, but there are steps that you can take to preventing some of these. Be patient, be understanding, and know that your REALTOR® and your mortgage lender want you to close on the home as much as you want to close on the home. We all like to hear the words Clear to Close!