What are the do's and don'ts while under contract?

When you sign a real estate contract, you're committing to a huge financial decision. Whether you're a buyer or a seller, there are certain do's and don'ts that you need to keep in mind to ensure the process goes smoothly. Here are some tips for buyers and sellers to follow while under contract.

Buyers:

Do:

- Keep all communications with your agent and lender professional and timely. Respond to emails and phone calls promptly, and ask questions if you're unsure about anything.

- Stick to the terms of the contract. If you agreed to a specific timeline for completing inspections or providing documentation, make sure you meet those deadlines.

- Be prepared to negotiate if issues arise during the inspection process. Your agent can help you navigate any concerns that come up, but it's important to be reasonable and avoid making demands that could derail the transaction.

- Get pre-approved for your mortgage before you start house hunting. This will give you a better idea of your budget and help you avoid the disappointment of falling in love with a home that's out of your price range.

Don't:

- Make big purchases or open new lines of credit while your mortgage is being processed. This can affect your credit score and could potentially harm your ability to secure financing.

- Get too emotionally attached to a property before you've closed on the sale. Anything can happen during the transaction, so it's important to stay level-headed and keep your options open until the deal is final.

- Try to back out of the contract without a valid reason. Doing so could result in serious legal and financial consequences.

Mortgage:

Do:

- Be honest with your lender about your financial situation. If you have any changes in income or expenses during the mortgage process, let your lender know as soon as possible.

- Stay on top of your mortgage application. Make sure you provide all necessary documentation in a timely manner, and be prepared to answer any questions the lender may have.

- Shop around for the best mortgage rates and terms. Don't settle for the first offer you receive – doing your research can save you thousands of dollars over the life of your loan.

Don't:

- Lie on your mortgage application. This is illegal and could result in serious consequences.

- Overextend yourself with a mortgage payment that you can't afford. Make sure you're comfortable with the monthly payment and that it fits within your budget.

- Apply for new credit or make large purchases while your mortgage is being processed. This can affect your credit score and could potentially harm your ability to secure financing.

In conclusion, being under contract is a big responsibility and requires both buyers and sellers to be diligent, organized, and honest. By following these do's and don'ts, you can help ensure a successful and stress-free transaction. As always, it's important to work with a reputable real estate agent and lender who can guide you through the process and help you make informed decisions.