The deal's done, right? Wrong.

So, you've got an accepted offer.

You've negotiated the inspection items.

The attorneys' have approved the contract.

... and you're all done now right? WRONG.

In today's times of crazy financing and fluctuating interest rates, the deal isn't a done one yet. There is still the mortgage contingency that has to be worked out. In better markets of several years past, financing was a foregone conclusion. Now, however, financing is more and more difficult to secure. The lenders are pickier, and loans are getting pulled RIGHT AT THE CLOSING TABLE.

As a seller, how can you protect yourself? There are a few things you can do. 1. Get a pre-approval BEFORE you accept an offer. NOT A PRE-QUALIFICATION. A pre-approval is where the lender pulls credit, verifies income and debt load, and has the client fill out a loan application. A pre-qual isn't worth the paper it's written on.

2. Stay on top of the mortgage contingency date. Stay in constant contact with the lender and make sure that things are moving ahead smoothly. Did the appraiser do the appraisal soon after the contract was accepted? Has the loan package been submitted to underwriting? Is there any additional paperwork the lender needs?

As a buyer, you to can watch your own loan as it goes through the pipeline. A lender might be annoyed at how often you call them, but you're trying to buy a home here. Take control and be your own advocate if the lender isn't communicating with you.

In conclusion whether you are a seller or a buyer, financing is a huge hurdle to overcome in the market these days. Don't count your chickens before they hatch and make sure the loan is proceeding in a timely manner!

Until next time...