Things home buyers need to avoid doing before and during the escrow process.
All right! You’ve locked onto a home you want to buy and you’re ready to make the offer. Congratulations! You know you’re making a good offer, and you’re already pre-qualified, so what could possibly go wrong?
Here are five things you want to make sure you DON’T do to insure your offer not only goes through, but that you don’t botch the deal before escrow closes.
Go in with little or no good faith deposit.
Even if you’ve been approved for a no money down loan or are obtaining a loan through the Veteran’s Administration, it’s still strongly advised to put down a good faith deposit along with your offer. This tells the seller you’re serious about making your purchase, and it gives you some “skin in the game.” How much? That depends on you and the level of seriousness in which you’re taking the process, as well as how much you want the home. Remember, those funds can go toward closing costs, and you’ll be refunded any unused amount at close of escrow.
Hold firm against the seller’s counter offer.
Flexibility may be the key to getting your keys…to your new home, that is. Typically a counter offer from the seller still means they are entertaining your offer, rather than flat out rejecting it. If you decide that the offer you’re submitting is your FINAL offer, refusing to consider any counter proposals or minor changes to the purchase contract from the seller, you may lose out. Rather than giving the counter offer the “heave-ho,” take a close look and see if it’s something you can work with. Or, find common ground and make your own counter proposal.
Do things with your money that can scare the bejeebus out of your lender.
Ignore your contingency due dates.
Your purchase contract comes with contingencies such as loan approval, home inspection opportunities, loan appraisals, and other pertinent “tasks” that are required to be completed before your loan will fund. The default on the California purchase contract (RPA-CA) is 17 days for contingency completion, although this may vary based on agreement from both buyer and seller.
Ignoring these contingency due dates may allow the seller to cancel the contract. In some cases, depending on your non performance, you may lose your deposit.
Be inflexible with fluctuating close-of-escrow dates.
Sometimes things happen in the life of an escrow that no one can predict. Documents are processed later than hoped. Final loan underwriting may be held up due to last minute questions from your lender on that savings account you thought you closed 10 years ago. The seller’s escrow on THEIR home purchase may be delayed.
While we understand you’re excited about getting the keys to your home, and have the movers scheduled, and are pulling the kids out of school, you have to remember that close of escrow only occurs when all conditions of the sale are met by BOTH parties. Getting upset or demanding the sellers move into a hotel so that you can take possession only escalates the issue and causes undue stress. Believe it or not, if this by chance happens to you, it won’t be the first time in real estate history. Take a deep breath, and we’ll work it through. You’ll be in your home before you know it!
We are here to help you reach all of your real estate goals.
Whether buying or selling a home, Sheppard Properties is ready to help guide you through the process to a successful close with as little stress and hassle as possible. Contact us today to find out more about how we can help you achieve your real estate goals.