Buying a Home? Avoid These 4 Mistakes in the Closing Process

You have found the perfect house, performed due diligence to get a pre-approval letter from your lender, and are now ready to close the deal for your new home. But your work is not quite done yet. If you are not careful, you might end up losing the property just as soon as you acquire it. Or, in some cases, the owner may even change their mind and sell it to someone else. Until everyone signs all the documents, the deal is still open. Here are 4 mistakes you should avoid in the closing process.

1. Not Honoring Your Closing Timeline

Sellers will not take you seriously if you don’t do what you are supposed to do, when you are supposed to do it. The good news is that your purchase agreement outlines every step of the buying procedure to help keep things moving forward. It is important to stick to these deadlines, which can include dates for things such as securing your finances and property inspection. Failure to do this may lead to a breach of contract. When this happens and the deal goes sour, the seller may end up keeping your hard-earned deposit.  

2. Not Following Up

When you are buying a new home, there are usually several other parties involved in the sale. Everyone from your mortgage provider to the home inspector is doing their part to ensure that the deal goes as smoothly as possible. However, mistakes do happen and someone might slip up and forget a crucial deadline, ultimately costing your dream home.

As such, it is always advisable to follow up on the closing timeline to ensure that everything is going as planned. If a deadline is just around the corner and the inspector has not given you an update, it is well within your rights to inquire about their progress.

3. Spending Big During the Escrow Period

The idea of owning a new home can be exciting, but whatever you do, do not make any big purchases before you finalize the deal. Many first-timers are so overwhelmed by the prospect of owning a home that they go out and start buying expensive furniture for their new place before they actually sign any papers. Sooner or later reality hits and they quickly discover that they may have to wait a little longer to achieve their homeownership dream.

This is because applying for and even getting pre-approved for a mortgage is not equal to actually getting it. Once you send your application, the bank has to vet your finances to determine whether you can handle the proposed mortgage payments. Spending money on big ticket items like furniture raises red flags and affects your debt to income ratio, particularly if you made the purchase using a credit card.

4. Not Hiring A Real Estate Attorney

Florida does not require the presence of a real estate lawyer when closing a deal. However, hiring someone for legal representation is in your best interest. An attorney can guide you through the legal paperwork and ensure that your rights are not violated.

Once you have done your research and decided on the ideal property to buy, you need to follow every step of the purchasing process until everything is finalized. If you need an experienced attorney to negotiate on your behalf, you can count on Reyes Law Group.

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Reyes Law Group

Reyes Law Group represents clients in a multi-disciplinary legal practice involving real estate transactions and litigation with a “footprint” that covers the State of Florida. Over the firm’s first 10 years, Reyes Law Group has closed over $100M in commercial closings, representing buyers and sellers in contract negotiations, due diligence, and the related title review and policy issuance related to closings. In litigation, the firm has commercial litigation experience focused on prosecuting or defending claims such as breach of contracts, partition actions, trade secret violations, and breach of non-competes. However, our firm’s MAIN FOCUS is assisting asset and loan portfolio managers, investors and private lenders with a “ 4-PILLAR APPROACH” to the legal challenges they face with non-performing assets: 1) LOAN WORKOUTS; 2) COMMERCIAL FORECLOSURES (across the State of Florida); 3) COMMERCIAL EVICTIONS; and 4) REO COMMERCIAL CLOSINGS.30+ years’ legal experience means - WE CAN HELP!

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