You put your credit in order. The perfect San Antonio home found its way to you. The seller accepted your offer. Now, you entered escrow. However, that’s not where your home purchase journey ends. In 2016 (the most recent statistics), almost 4% of homes fell out of escrow. What went wrong and how do you prevent your real estate transaction from going off the rails?
How to Keep Your Escrow on Track
Get Approved Before You Look
One of the most common reasons a Stone Oak home sale falls out of escrow is due to a lender denying a buyer’s mortgage loan application. Avoid this by starting the funding process before you even start looking at a new home. Submit your pre-approval letter with your offer to assure a seller that you’re serious.
Perfection is Rare
Don’t be discouraged if a home inspection unveils a couple of small problems. No home’s perfect. You want the Stone Oak lifestyle. But even brand new construction can come with its own issues. With that being said, though, feel free to negotiate if larger issues present themselves. And, with a home inspection contingency in place, you can walk away from the entire process with your earnest money intact if you feel the bigger problems are too much for you to handle.
Keep Spending to a Minimum
It’s so easy to get excited about your new San Antonio home. Thinking about how you want to decorate can send you straight out to the department store. You might be tempted to go online and order new window coverings, flooring, furniture, etc. Maybe your car has seen better days and you really want to trade it in on something else. (That has nothing to do with the new home, but…timing.) If you don’t want to fall out of escrow, put the kibosh on spending until after you sign your final paperwork. A change in debt load could jeopardize your chances for loan approval. The lender runs a final credit check towards the end of escrow. It would be a shame to get that far just to find out you spent yourself out of your chance at that new house.
Bring Your Documents to Signing
Finally, don’t forget your documents. Typically, you need to bring an official ID (driver’s license, passport, government-issued ID, etc.), proof that you obtained homeowner’s insurance, a copy of your sales contract, your home inspection report(s), a bank-issued check or wire transfer for your closing costs, and any other paperwork the lender requires at closing. Double check with the lender several days beforehand to ensure you bring everything you need. If you forget something, this could delay your closing by several days.
Congratulations on your decision to become a San Antonio homeowner. When you want to look for a new home, contact me. I’d love to show you around.
LUX Move Up* by Christine Aldrete Banks, CRS, SRS, RSPS