Buying a Home? Please Do Not Do The Following!
You've finally found the house of your dreams. You know this because your wife almost pulls your arm out of its socket when you walked into the kitchen, and says, "This is the one." You have run your credit through a preferred lender and have worked dilligently with the best Realtor in town, Christopher Smith of Skogman Realty (of course, duh). Then, your Realtor hands you this list and in his best teacher voice says, "Between now and closing time, please do not do the following."
You look at this list with some trepidation. You thought you were in the clear, home and/or scott free. You were about to go crazy and buy that big screen T.V. before the Super Bowl. Hold on! Perhaps one of the most critical times a buyer has is between the time a purchase sale contract is agreed upon by the seller, and the wheels are put in motion to close on the property. If you think your lender (after approving your loan initially) is not going to run another credit check a week before you close to make sure everything is on the up and up, think again, they will!
Here is a list of no-no's that could wind you up with your favorite Realtor again looking for a property of slightly less value than before because you went out and splurged a bit too much before closing.
Do Not Make a Major Purchase - your debt to income ratio is a huge factor in the loan approval process. If you go and purchase a new car to go with that new house, your lender is going to take that into consideration when they ascertain whether or not you can now afford your monthly mortgage payment.
Do Not Change Employment - Your job history is tied into your monthly income history and your ability to provide check stubs, bank statements to prove a steady flow of income. So, changing jobs will start that process all over and lenders tend to look harshly on this.
Don't spend your savings account you had saved for closing costs. I know it's tempting to buy new furniture and draperies for the new house, but pahlease, wait until closing.
Don't forget to secure insurance for the new property. Insurance coverage should start the day you close on the property, not a week or month later.
Don't forget to change over your utility service. Items like cable, electricity, water, gas, etc... all need to be turned on or transferred by the day of closing or on the day of closing, so you'll have necessary utilities when you are moving in.
Keep your cool brother, keep your cool! Buying a home is a very stressful time in your life. Do not complicate things by blowing a cap over a seller's refusal to take care of something petty on an inspection report. Take a deep breath and repeat after me, "This too shall pass, this too shall pass."
Do not fail to comply with all requirements by your lender. Whatever paperwork and/or documentation you need to provide, you provide it, end of discussion!
Don't become best buds with the seller. Remember that this was their house for a number of years and there are a lot of emotions tied to a home, so let the need to be friends pass quickly. Once you close on the house, you can quickly replace the disco shag carpeting in the basement and the lime green seventies countertops in the kitchen.
Do not have a cow if the appraisal comes in low. A lot of times this won't happen because you normally work with good appraisers. However, there will be times when this does happen. Do not panic! Discuss this with your agent and go over your options.
Do not buy a house by yourself! Repeat, do not buy a house by yourself! I can't emphasize this enough. Using a Realtor is absolutely FREE to you, the buyer. Normally, the seller pays the commissions to the agents so use the expertise and training of your local Realtor, Christopher Smith. If you have any questions, please call him at 319-329-5988 or visit his award winning website at www.ChristopherSmithRealtor.com You'll be glad you did!