Ratification Rules Of Engagement
Congratulations you are ratified! Ratification is when you and the seller of a property have agreed on all of the original terms for purchasing their property. These terms can change between ratification and closing but only through negotiations and new terms in writing and signed by all parties. This is the point in the transaction that you are 30-45 days away from settlement (on a standard sale). Let’s talk about the time between signing the contract and signing the closing documents. This is when you have to be very disciplined with spending and purchases. After you get ratified on a home your agent will send the contract and accompanying addendums to your loan officer and title company. This starts the process of funding your loan. During this period of escrow there are certain things that you shouldn’t do no matter what. There are also some things that you should definitely do. Read on to find out the ratification rules of engagement.
The Don’ts
There are quite a few things that will cause you to lose out on the home you are looking forward to moving into.Just keep in mind your credit will be pulled at application (after contract is sent to loan officer) and again the day of settlement. Any changes in your debt to income ratio or credit score can affect your mortgage approval.
Do not under any circumstances buy any of the following while you are in escrow:
Another home (yes this sound crazy but people are crazy lol)
A new car
Anything with your credit cards (lock them up in a box in the back of your closet until closing)
New tires
Expensive bags
A vacation
Basically anything other than groceries and necessities purchased with cash (not credit cards)
The Do’s
Trust the professionals who have brought you this far. Tell them about your doubts and your concerns the whole way through. This helps them negotiate on your behalf. Do make sure you are living naked. No don’t be weird I don’t mean walk around naked. I mean as far as your finances. This term means you will only be buying what you need to live and nothing else until you sign your closing documents and leave with the keys to your new home.
Always communicate with your realtor and loan officer throughout the process if you have a question about something. Want a more in depth look at the home buying process? Check out my home buying process video in my learning center.