What NOT To Do After Going Under Contract

Buying a home is an exciting and significant milestone in life. However, it's crucial to remember that the journey doesn't end once your offer is accepted and you go under contract. In fact, this is when your actions become even more critical, as any misstep could jeopardize your ability to secure a loan and ultimately purchase the property. To help you navigate this crucial stage successfully, here are ten things that buyers should avoid after going under contract:

1. Changing Jobs or Quitting Your Job: Lenders verify your employment status and income throughout the mortgage process. Any significant changes to your employment situation, such as switching jobs or leaving your current one, can raise red flags and potentially derail your loan approval. 

2. Making Large Purchases: Avoid making any significant purchases on credit, such as buying a new car or furniture, as this can increase your debt-to-income ratio and affect your loan qualification. Wait until after closing to indulge in big-ticket items. 

3. Opening New Lines of Credit: Resist the temptation to open new credit cards or lines of credit, as this can also impact your credit score and debt-to-income ratio. Even inquiries for new credit can have adverse effects on your creditworthiness. 

4. Missing Mortgage Payments: It may seen obvious, but missing mortgage payments during the escrow period can be disastrous. Lenders monitor your credit and financial activity closely until closing, and any missed payments can raise concerns about your ability to repay the loan. 

5. Neglecting to Communicate with Your Lender: Open and transparent communication with your lender is essential throughout the home buying process. If you encounter any changes in your financial situation or have questions about the loan process, don't hesitate to reach out to your lender for guidance. 

6. No Large Deposits into Bank Account: Other than your paycheck, large deposits can raise red flags while under contract on a property. Always get clarification from your lender before making any deposits. Avoid making any significant changes to your account via transferring large sums of money between accounts or cosigning loans for others. Any and all of these actions can complicate the underwriting process and delay your loan approval. 

7. Do Not Spend Your Downpayment Money: I know this might sound silly, but it happens. Sit tight for the remainder of your time under contract so you have all the funds come closing day. 

8. Skipping Home Inspections: While it may be tempting to forgo a home inspection to save time or money, this is a risky move that can lead to costly surprises down the road. A thorough inspection can uncover potential issues with the property that may impact your decision to move forward with the purchase. 

9. Skipping Final Walk-Throughs: The final walk-through is your last chance to inspect the property before closing and ensure that any agreed-upon repairs have been completed satisfactorily. Skipping this step could leave you with unexpected issues after you take possession of the home. 

10. Celebrating Prematurely: While it's natural to feel excited about buying a home, it's essential to refrain from celebrating too soon. Until the closing documents are signed, the keys are in your hand, and the sale is officially recorded, anything can happen. Stay focused and avoid any actions that could jeopardize the closing process. 

In conclusion, the period between going under contract and closing on a home is a critical time that requires careful attention to detail and prudent financial behavior. By avoiding these common pitfalls and staying proactive throughout the process, you can increase your chances of securing a loan and successfully purchasing the property of your dreams. 

As always, call me with any questions and let's talk about how I can help you on your way to home ownership!

Andrea Chambers

REALTOR Broker Associate - ARIA Real Estate Group

405-361-0440