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What NOT to do when under contract on a new home
Dated: February 6 2025
Views: 356
When you’re under contract on a new home, it’s crucial to avoid certain actions to ensure the process goes smoothly. Here are key things NOT to do:
1. Don’t make large purchases or take on new debt: Avoid buying big-ticket items like furniture or cars, or opening new credit accounts. This could impact your credit score or debt-to-income ratio, potentially affecting your mortgage approval.
2. Don’t change jobs or make major career moves: Lenders typically prefer stable employment. Switching jobs, especially to a position with a different pay structure, can raise red flags.
3. Don’t make late payments or open new credit lines: Any missed payments or additional credit inquiries can negatively impact your credit and jeopardize the loan process.
4. Don’t make any major changes to your finances: Avoid draining savings accounts or making significant financial changes without consulting your lender, as it may affect your down payment or closing costs.
5. Don’t skip the home inspection or appraisal: Even if you think everything is fine, skipping these steps could leave you with unexpected issues or affect your loan approval.
6. Don’t assume everything is final until closing: Continue to follow through on all contingencies in the contract, like inspections or repairs, and stay engaged until you officially close on the home.
7. Don’t ignore communication from your lender or realtor: Respond to requests for documents or clarifications promptly. Any delays can slow the process or risk the contract being canceled.
By avoiding these actions, you increase the likelihood of a smooth and successful closing.
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The information being provided by Greater Scranton Board of Realtors is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the Greater Scranton Board of Realtors. REMAX Home Team is not a Multiple Listing Service (MLS), nor does it offer MLS access.
