From the moment you sign the purchase agreement until you close on your townhome, you have to be on guard for situations that could derail your purchase. Some situations are out of your control. Others can be handled by taking appropriate actions from the start of the home buying process. To help improve your chances that your townhome's purchase goes through, here are some potentially tricky situations you can face and what you can do.
Your Creditworthiness Has Changed
Some home buyers mistakenly believe that after being approved for a mortgage loan, they are in the clear with their lender until closing. What they might not realize is that lenders routinely reassess creditworthiness in the few days leading up to the closing. If the lender finds any changes to your credit situation, such as your income-to-debt ratio has changed, you could be faced with a problem.
Your lender could decide to pull funding for the townhome or change your interest rate. The interest rate could increase, which means you would pay more than currently quoted for your new townhome.
The simplest way to avoid a shift in your creditworthiness is to avoid opening any new credit lines prior to closing. You also need to be vigilant about your credit. You can either sign up for a credit monitoring service so you can receive an alert if changes are made to your credit report or monitor your status yourself. If there are changes, you need to take action immediately.
The Seller Has Second Thoughts
Although it is not a common occurrence, it is a possibility that the seller can doubt his or her decision to sell the townhome. There are a number of reasons a seller could change his or her mind. For instance, he or she might not like the terms to the purchase agreement or want to look for better offers from other potential buyers.
If your seller has stated he or she is considering backing out of the deal, find out why. Once you know the reason, you can decide which actions are appropriate. For instance, if the reasoning is wanting a better offer on the home, maybe you can renegotiate your agreement to pay a higher price or take on more of the expenses, such as the closing costs.
Your real estate agent can help you pinpoint the right response to seller's remorse and hopefully keep your home purchase on track.