Common property contract pitfalls to avoid

You found the perfect home, now what? With mortgage pre-approval (and DU) and proof of funds to close in hand, your Realtor meets with you to draft the contract. They will make sure to add a contingency for inspection period, a contingency for mortgage approval, and may add a contingency for appraised value. Depending on your personal circumstances and needs other addenda may be added to the offer. Your Realtor will make sure that:

1. The inspection contingency provides for sufficient time to schedule the home inspection and for the inspector to send back the results.

2. The mortgage contingency allows for sufficient time for your lender to obtain underwriting approval for your loan. They will also make sure that the closing date gives proper time to your loan originator to submit the loan, have it processed, order appraisal and submit approval conditions required by the underwriter.

3. Your Realtor may or may not also add an appraisal contingency. This means that if the appraised value of the home is lower than the purchase price, Listing Agent and Selling Agent will negotiate a new sales price.

Having an experienced season ensures that your transaction is a smooth one and that any problems are anticipated and worked on before they become a hinderance to closing.