Things NOT To Do When Buying A House
Buying a house can be stressful enough as it is. In a competitive seller’s market, like Portland has right now, most buyers will write offers on multiple properties before getting into contract. Once in contract, it might seem like there is time to focus on other things, which can sometimes lead to mistakes. So, here are a few things to be sure NOT to do while buying, or being in contract on a house.
1. Don’t quit your job or make drastic employment changes.
While this might seem like something that doesn’t need to be said, it happens. Many people buy property that offers them the opportunity to run a home-based business, and once they are in contract, decide to pull the plug on their employment. This is a great way to torpedo your financing. A lender will ask for documents relating to your employment in order to approve the loan, and no longer having employment is going to make that tricky, don’t you think?
2. Don’t make other large purchases.
Again, lenders like stability in your finances. Making large purchases, and particularly putting large purchases on credit can make a significant change to your debt/income ratio, potentially killing your ability to get final mortgage approval. Wait until the purchase is complete to buy all that new furniture.
3. Don’t go AWOL.
While you are in contract to purchase a home, there are still many decisions to be made, and documents to review and sign. In addition, your lender will be following up with you regularly, asking for updated financial information. If those documents are not submitted in a timely fashion, it can cause delays to closing, which could mean renegotiation with the seller, or potentially a termination of the contract. Many things these days can be accomplished with only a smartphone, so if you are going to be vacationing while in contract, just keep your phone nearby.
4. Don’t make large deposits or withdrawals.
While this may seem counterintuitive, putting in large deposits, especially in cash will likely cause a lender to view your financial situation with more scrutiny. Regulations require lenders to verify that a person’s finances be coming from legitimate and reliable sources, and large cash deposits are hard to verify. Same thing goes for withdrawals. If you must make a large withdrawal or deposit, talk to your lender first, so that they are aware, and can give you guidance to keep your financing on track.
5. Don’t get cold feet.
Yes, buying a home is a big deal for most people. There are a lot of bits and pieces that go into making the process successful. As realtors, it is our job to make sure that your questions get answered, so that you feel as comfortable as possible throughout the process. There will be times where you might feel overwhelmed or confused. Talk to US! We have been through the process many times and likely have the answer that will help. Bailing in a contract due to cold feet is likely to result in a loss of earnest money for a buyer.
Thanks for checking out our list of things NOT to do when buying a house. As always, if you are buying or selling a home in the Portland area, we are here to serve you. Reach out any time with your questions!