5 things to avoid after you sign a purchase contract to buy a home

Shockingly enough people still do the things that can cause themselves heart ache when buying a home. Here’s what you need to know plan on buying a home…

Your ability to buy a home rests on the numbers and documentation your mortgage lender has. If there is a change in any of these things, your chances to buy a home can be jeopardized and or negatively impacted. This means that when there is a change to your credit, debit, income assets, or job during the escrow process you might not be able to buy that house and you risk losing your earnest money. Avoid the following things when buying a home:

  • Applying for credit – after you get a contract to buy house do not apply for any credit. This means do not apply for a car loan, a credit card, utility bill, a cell phone bill, or any form of credit whatsoever. Doing so could change your credit score and could impact your rate lock and/or your fees associated with closing on the house.
  • Changing credit – closing out any credit cards and disputing credit cards can have negative consequences. If you have any accounts in dispute the mortgage lender cannot run automated underwriting, and they must pause your loan file until your accounts are taken out of dispute. If you close your credit card, that can hurt your credit score which turn can increase your fees jeopardizing your home purchase.
  • Moving money around– keep all of your money in the same place. Don’t move money around. Moving money around can cause more headaches for yourself than necessary. If you are receiving a gift funds, the donor can wire the funds directly to escrow bypassing your bank account entirely. If any these funds happen to hit your primary checking out, that could spell more trouble as it could appear on paper as though you are spending your cash to close.
  • Keep your job – changing jobs then getting into contract with the proper documentation is one thing. Signing a purchase contract then changing jobs is something else entirely as most mortgage banks typically want you on the job for at least 30 days. Some lenders will also want a pay stub at normal pay, an offer letter and a verification of employment prior to closing on the home.  A word to the wise close on the house with the current job that you have.
  • Hiring a moving company or purchasing furniture – hiring a moving company when you have not signed your final loan documents is just plain unnecessary and it sets you up for failure. If you have a moving company come on a certain day and for whatever reason your house doesn’t close on that certain day, things become problematic. Hire a moving company after you’ve signed final loan documents. Same goes for purchasing furniture especially if those funds for purchasing furniture come in the form of using credit or cash in the bank -close on the house first then spend.  Short term gratification versus long-term value is not worth the risk.

By adhering to these steps after you sign purchase contract, you will be well on your way successfully closing escrow with little or no hiccups. Looking to buying a home? Get a free quote now.

 

 

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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