If you are about to buy a house, don't make major changes to your finances!

By
Real Estate Agent with Century 21 Redwood Realty, Arlington Virginia

There are many things you should have on your mind.  One of the biggest ones is your money.  I tell buyer clients, after you are ratified and have loan approval "Do not make any major changes to your financial situation."   Can I get a new higher paying job?  Well yes, that is allowed.  But be prepared to prove it umpteen different ways.  The bank is not going to take your word for it.  And if you do anything with your money - tell your loan officer about it first, and make sure it's not going to blow your loan.

Don't open new lines of credit.  Don't be tempted to get that furniture discount at Macy's.  Just wait until after you've closed.  The lender will check your credit again, and opening new lines could throw off your ratios.

Don't make a huge payment to anything.  Banks want to see cash in the bank. You were approved with a certain snapshot of your cash.  If it disappears, they are going to get nervous about your ability to perform at closing.

Certainly don't quit your job or take a lower paying one.  They will call employers right before closing to confirm you still work there.

Don't make any major purchases.  Now is NOT the time to buy a new car or boat.  Wait till after closing.

Sales are falling apart left and right (fortuately, not among my clients) out there due to banks' higher level of scrutiny and tight underwriting.  Follow the straight and narrow.

 

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Tracie Cope 05/28/2011 08:01 AM
  2. Dan Edward Phillips 05/31/2011 08:22 AM
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Topic:
ActiveRain Community
Location:
Virginia Arlington County
Groups:
31 Days of May Challenge 2011
Agents who want REFERRALS!
BananaTude
Bartender, Make it a Double
"Whacked"!!!
Tags:
buyer behavior

Comments 12 New Comment

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Rainer
47,485
Jim Courtney
GRI, AHWD
OklaHomes Realty, Claremore Oklahoma

Excellent and worth repeating to buyers constantly! I tell every one of my buyers this and they still do it. I have had buyers come to the closing in a brand new truck...they nearly lost thier deal and their interest rate went up because they had to start over. My personal favorite were my buyers who bought a Rainbow vacuum (expensive I think). They bought a single unit, and this purchase alone cost them their new home through loss of financing. What, you couldn't wait for 30 days to do your floor??

Buyers will be wise to take your advice...DO NOT DO ANYTHING THAT CHANGES YOUR CREDIT UNTIL AFTER CLOSING!  :)

May 28, 2011 02:56 PM
Ambassador
1,391,635
Tammy Lankford
Your Lake Sinclair Expert (706-485-9668)
Lane Realty

I recently had some folks stop by that were driving a brand new car.  I told them to get re-approved before I would show them prioperty.  They didn't understand why the approval prior to the car purchase wouldn't work.  Duh.

May 28, 2011 07:14 PM
Rainmaker
398,592
John Cannata
Texas Home Mortgage - Purchase or Refinance
214-728-0449 http://TexasLoanGuy.com

I'm working with two people that changed their job shortly after signing the sales contract. I explained that they have to wait for a full 30 days at the new job. Luckily, we had enough time. It could have been ugly if they would have changed jobs closer to the closing date. As it stands, we are looking to close one next Friday and the following loan 4 days later.

May 29, 2011 04:51 AM
Rainmaker
1,168,192
Jay Markanich
Home Inspector - servicing all Northern Virginia
Jay Markanich Real Estate Inspections, LLC

But if you take out enough new credit cards, you might just be able to pay for the house.  Then drop the cards and keep your house!

Plan?

Look carefully at the eye.  It is winking...  see?

May 29, 2011 01:10 PM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Coral:  Isn't it interesting what people will do right before completing a house purchase?  My favourite is the new car or all new furniture on credit.   YIKES

May 31, 2011 08:25 AM
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Coral Gundlach

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Additional Information

Looking to buy or sell real estate in Arlington, Virginia and surrounding areas? This blog is a great place to get advice, tips and market information on Arlington, Alexandria, Annandale, Falls Church, McLean, Fairfax, Vienna, Oakton, Chantilly, Reston, Herndon, Springfield and Loudoun County Virginia Real Estate. I am a Top Producing Realtor servicing both buyers and sellers in all of these areas. If you are looking for a different kind real estate experience, then give me a call or email. Buyers: My goal is to give my clients the tools and information they need to find their best home. I will give you honest, sound advice, based in reality of the market, and never pressure you. I also will guide you through the complicated process of contracts, mortgages, inspections and negotiations. Sellers: I do extensive comparable research, and will know the best features of our home to market, blanketing the internet and surrounding area with news of your listing. I will blog about your listing, tell my colleagues about it, and make sure its best features reach the appropriate target audience.
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