Below are 10 things which I feel should be adhered to when you have an accepted offer for a home.

1. Don't Make a Major Purchase
If you are depending on a mortgage to move in and cover that major purchase you best hold off until after the closing date. There are many terms which can be written into the purchase and sale agreements. This see to change quite often depending on the reality agency which you are using. If just one of these terms are not met then both the seller or buyer has the option to cancel the agreement. So you best wait until after the closing date before you make a major purchase.

2. Don't Change Jobs Unless It's Necessary
Your financial institution or lender like to see a consistant job history. It is best to stay where you are until after the house is yours. Changes in these circumstances can have a negative impact on obtaining the mortgage to purchase your home.

3. Don't Give an Earnest Money Deposit Directly to a Private Seller
If a deposit is being provided in a private sale ensure that terms are written and signed that they deposit received must be placed in a trust account until after the closing date. Most private sellers do not understand that a deposit is not theirs to spend until after the sale is complete.

The best option is to have an attorney palce the deposit into a trust account and terms drafted dictating what will happen with the deposit if the transaction is unsuccessful. It will save you from having to fight to get your deposit back from the seller.

4. Don't Let Your Emotions Take Over
Keep a cool head during the whole process. I will warn you now. The home inspection can be quite stressful when the inspector outlines thier finding. Be realistic. No home is perfect. Keep in mind it is not unusual for a home owner to take care of some repairs themselves prior to the closing. Don't let the seller's refusal to do a small repair kill the deal on a home you truly love.

On the other hand, don't fall so much in love with the house that you'll buy it no matter what needs to be done. Unless you're sure you can handle it emotionally and financially. Decide what type of repairs you can realistically tackle, then stick with the decision.

5. Don't Forget to Switch Utilities
That sounds simple, but you'd be surprised how many people forget to apply for utility service at their new home. Call the utility companies as soon as you have a contract. Find out how many days lead time they need to switch the service, then get back with them when you have a firm closing date. Don't forget to discontinue services at your old home.

6. Don't Forget Insurance
A no-brainer, right? But it's another often-forgotten task that buyers scramble to take care of at the last minute. Before closing, your lender will want to see an insurance binder showing you have coverage for the new home. Get it as early as possible so that closing isn't delayed. In some locations, additional types of insurance coverage might be necessary. Talk to your lender about insurance requirements well before the closing date.

7. Don't Become Best Friends with the Seller
It's great to be friendly, but don't get into too many long discussions with the sellers, because personality conflicts often cloud judgments. Remember, this is their home. You're no doubt excited about moving in, and if you didn't like the house you wouldn't have offered to buy it. But you'll make changes. Everyone does. A casual statement about "ripping up that ugly carpet" might be hurtful enough to keep the seller from negotiating with you about repairs or other issues that crop up.

8. Don't Panic if the Appraisal Comes in Low
At least not at first. There are some things you or your reality agent can do to correct the problem. Ensure to discuss this further with your reality agent.

9. Don't Go It Alone
If you're working with a reality agent, it's the reality agent's duty to track many of the day to day details that involve the lender, the seller, or the seller's agent. Be sure your agent schedules a final walkthrough the evening before the closing.

10. Don't Ignore Your Lender's Requirements
Know what is expected of you and take care of it. For instance, a Certificate of Eligibility is required to move forward on a VA loan. That's something you must handle yourself. Answer the lender's questions and provide required paperwork as quickly as possible. Moving into your new home depends on it.
posted by Rick at 4/12/2006 06:20:00 PM

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