Don't Celebrate Too Soon: Last Moment Home Buying Snags To Avoid

That moment when an offer has been accepted on the home of your dreams will always be a wonderful memory, but you should understand that you are just starting down the path toward home-ownership. You can help ensure that everything continues to go smoothly by making note of the following home-buying snags and taking steps to avoid them, so read on.

Loan rates are not set in stone. Getting an optimum interest rate on a home loan is a big part of ensuring that you get your home at an affordable price. The amount of your monthly loan payment is not just a number that fits your budget, but that number is often a key ingredient in your loan being approved in the first place. Your mortgage lender will determine exactly how much you can afford based on a given rate, and that rate is only approved for a certain period of time. In most cases, you are able to close on your home in the 60 day period (or whatever your lender has guaranteed), but sometimes there are delays associated with appraisals or home inspections. To help ensure that you don't get caught off-guard, pay close attention to your rate guarantee end date and the closing dates to avoid a nasty financing surprise at the last minute.

Your loan could still be denied. Many people fail to understand that, while a loan approval is a good thing, it is not a permanent approval. Lenders will continuously scrutinize your credit up to the last moment, and any dings or changes could mean trouble for your loan. Make sure that you continue to treat your credit like the delicate creature it is, and don't' do anything to jeopardize it. For example, don't:

• Request a credit increase on any credit cards
• Request new credit for any reason (for instance, don't try to buy a car on credit).
• Remove any large sums of money from your checking or savings accounts, except for closing costs.

You rely too heavily on the final walk-through. Not all homes are perfect, and in some cases your contract to purchase may be contingent on the owner making some changes or repairs to the home before you take ownership of it. It is in your best interest to follow those repairs closely and verify the completion well ahead of your closing day. If you wait until the day before closing to do an inspection, it will likely be too late to take action if everything promised is not done. For more information, contact companies like RE/MAX Orange County East.

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