Glo Downtown appears to be a smashing success. Have you made it there yet? You have until March 21st to give them a go. So, there is still time to hop aboard. Try the self-guided Westfield Chocolate Tour after you finish playing. It makes a tasty end to an afternoon or evening of see-saw fun. Are you in the market for a Westfield home? Once you find one, you must present an offer to the seller. Then, once a seller accepts, you enter escrow. After that…you wait. Sometimes, deals fall out of escrow through no fault of your own. Other times, you might unknowingly jeopardize the deal. What can you do to make sure you do not hurt your chances of reaching the finish line?

How to Fall Out of Escrow

Get Pre-Qualified Instead of Pre-Approved

Last month, I wrote about the difference between pre-qualification and pre-approval on a mortgage loan. Lenders pre-qualify a buyer based on a quick analysis of income vs debt load. This only offers you a potential loan amount. A pre-approval delves deeper into your credit score, credit history, verification of income, etc. Many sellers avoid even entertaining an offer without a pre-approval letter backing it up. Start the pre-approval process as early as possible. But even a pre-approved loan does not guarantee final approval. You may still fall out of escrow.

Paying Too Much

Another way to fall out of escrow is if you offer to pay over the appraised value on a Westfield area home. If you must secure a mortgage loan to purchase your property, the lender requires that an appraisal be performed. They do not approve loans above the appraised value. To avoid falling out of escrow, the seller needs to come down on price (not likely) or the buyer must come to the table with more money down. Discuss this with your Westfield REALTOR® before you present your offer. They can help you determine your best course of action.

Too Much Too Soon

Finally, timing is everything. Yes, it is understandable that you are excited about the idea of a new home. You might already be dreaming about the new furniture, flooring, or other accoutrements you want to see in your new living space. However, even a pre-approved mortgage loan can fall out of escrow. A change in your debt load or credit score affects your chances of closing on a property. Leave the plastic at home. Do not open new credit accounts (that includes new car leases/purchases, store credit accounts, or personal credit cards). Once you sign your final paperwork and receive the keys to your new home, then you can start shopping.

Scott Gleason, CRS at Coldwell Banker Realty – East, NJ Luxury Homes