Buy that Ring or Buy that Home

By
Real Estate Agent with Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate
http://actvra.in/qtQ

Buy that ring or buy that home? Well if it is not an engagement ring, it might be that diamond ring or real estate?new sports car or SUV that captured your attention and just took that dealer loan out.  What did your loan officer tell you months ago about avoiding changes to your financial situation during your mortgage loan process period?

You did hear the loan officer when he said what not to do prior to closing on your mortgage?

 fancy car   Yes, you say, but you already applied for the mortgage so what's the difference? Anyway you just had to buy the ring because your fiance expected it.  Hmm, you really did not hear your loan officer did you.  No changes, means no changes if you want to get to the closing table and buy that new home.  You as the buyer have already botched your chance for now of procuring that mortgage commitment letter.  No buying right now.  Honestly, a paper cigar band might have worked half as well instead of the diamond for that wonderful lady?!

See the lender's underwriters do not like to see big changes in your credit right now.  Especially NOT an engagement ring on your credit card .  It is a red flag to them that you  spend money unwisely and without thinking.  Therefore, you are not seen as a good credit risk for paying on your mortgage and therefore not worthwhile lending to right now.   This is 
a reason that your real estate agent and lender talk into each of your ears about being careful with credit.   

 Guess what?  You will need to wait a good six months down the road now to do the mortgage process again.  And remember to hold that diamond next time. 
Buy that Ring or Buy that Home!

!!!!!!!!!!!!!!!!!!!!!!!

Ginny Lacey Gorman is a North Kingstown Realtor who works and knows the North Kingstown RI geographic area of homes for sale, schools, happenings, important tidbits of information and  businesses well.  Waterfront, water view, ocean front, luxury and coastal RI real estate are her specialty, so call Ginny for your buying and selling home needs. As North Kingstown short sale agents, she and her team helps clients navigate successfully the rough short sale waters throughout RI, contact Ginny if you are having trouble paying your mortgage.  When you are in need of an internet savvy RI realtor® who sells homes in this real estate market, call Ginny today at 401.529.7849.

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This blog © and its contents is original to Ginny Lacey Gorman

the RI waterfront Realtor of Choice

 

Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Realtor in the Sparkly Red Shoes.

 

Looking for a knowledgeable Rhode Island Realtor?  Let me GOOGLE one for you!

            

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Ambassador
936,183
Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

Great advice, Ginny - BUY NOTHING!!!!  is what I tell my buyers.   

Dec 30, 2011 07:56 AM #8
Rainmaker
326,826
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

Ginny, that's really good advice. A roof over your head is a priority. The ring is a non essential luxury.

Dec 30, 2011 08:05 AM #9
Rainmaker
1,105,757
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Dorie, thanks for the boost...it got me to thinking about a squirrel in my basement we still haven't caught & squirreling away one's money!

Debbie, it just seems it doesn't go in that order anymore..best

Dagny, onward & upwards friend...

Ellen, if they only would remember that essential advice...

Dec 30, 2011 08:15 AM #10
Rainmaker
276,631
Carol-Ann Palmieri
RE/MAX Executive Realty, Al and Cal Realty Group - Franklin, MA
"Cal" the Real Estate Gal

Good Morning Ginny!    What a great blog!    Suggested!   I have had clients do this sort of thing even after "the talk".    They just don't get it... so, they don't get the house.  

 

Dec 30, 2011 08:16 AM #11
Rainmaker
1,488,437
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ginny, great reminder to those buyers in the process of purchasing a house.   If their credit is close, it could bump them out of being approved!

Dec 30, 2011 08:36 AM #12
Rainmaker
1,433,885
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

I know this story...lost a buyer in 2010 because he didn't heed our advice...instead he bought a new Corvette.  He is still renting a home. 

Dec 30, 2011 08:36 AM #13
Rainmaker
391,615
Kristine Ginsberg
Morris County, NJ: Elite Staging and Redesign, LLC - Morris Plains, NJ
Morris County, NJ Stager

Ginny - I too have heard this story, but it still amazes me that  while someone's buying a home they go out and buy a car or an expensive engagement ring even after they are told no large purchases! I hope they really like that car - they might be living in it - lol. Hope you have a wonderful New Year!

Dec 30, 2011 08:59 AM #14
Rainmaker
1,105,757
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Carol Ann, i guess it is a talk you need to have more than once with buyers...Happy New Year!

Joan, I know that you share it so well...have a great 2012!

Anita, isn't it just amazing...some need to mature a bit more I believe!

Kristine, it is very true and I am going out with a bang it looks like!

Dec 30, 2011 09:04 AM #15
Ambassador
1,503,805
Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Ginny, A criticial item that too many forget about.  Buy the furniture, new car, ring, whatever, AFTER closing.  It's that simple.

Dec 30, 2011 09:29 AM #16
Rainmaker
1,136,413
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Ginny. Terrific post and very well stated. Sometimes our clients hear us but do not listen. Too bad for them. Great job. Suggested.

Dec 30, 2011 10:40 AM #17
Ambassador
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Ginny, I think we all tell our clients that, but sometimes they just don't listen. I had a buyer disqualify themselves after 3 weeks when they came to a showing with a new car. I asked if they had talked to their loan officer since they bought the car, which they hadn't and the next day they were told that they do not qualify, nor will they qualify for some time. Harsh lessons.

Dec 30, 2011 02:31 PM #18
Ambassador
1,905,278
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Ginny the reason you gave is a good one, but are a couple of more reasons why they should not buy the ring.  The extra debt could push the debt-to-income ratios over the top, also the extra debt could lower the credit score to the point that they are below the scores needed for the loan program.  People do dumb things all the time, but of course it is our fault because they will claim that they were never told to not do that.

Dec 30, 2011 02:38 PM #19
Rainmaker
514,883
Christine Smith
Buyers Brokers Only LLC - www.BuyersBrokersOnly.com - Canton, MA
Exclusive Buyer Agent & Attorney, Canton, MA

Ginny....I think the house can substitute for the ring until AFTER the closing!  

Dec 30, 2011 04:26 PM #20
Rainmaker
1,105,757
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

BLiz, amen, ament!

Sheila, it is true...sometimes it is okay to be a broken record.

Ed, isn't it true...I'm thinking they were born without ears perhaps..

George, thanks for expanding on it...i only shared 1 piece...excellent point!

Christine, oh you are a great buyers agent...

Dec 30, 2011 06:00 PM #21
Rainmaker
230,053
Donna Paul
Keller Williams Realty Gold Coast - Dix Hills, NY
Long Island Home Specialist, Search for Long Islan
Ginny, I was in that position with one of my buyers too. After getting their approval , the lender explained to my buyer that they shouldn't spend however that wasn't the case and we had to wait for a while to begin the porcess all over again.In the end I followed through with my buyer and now they do have their home but it was a long wait.
Dec 30, 2011 06:11 PM #22
Rainmaker
261,202
Carla Freund
Keller Williams Preferred Realty - Cary, NC
Raleigh - Cary Relocation & Luxury Home Specialist

Ginny - Great Point! Sometimes buyers don't realize their credit can be pulled right before closing and if they no longer qualify there's a good chance they won't get the loan.

Not to mention they sign their loan application saying they've not added debt and lying is fraud.

Like you I tell buyer's to wait. They can do what they want after closing.

Dec 30, 2011 10:02 PM #23
Ambassador
1,926,532
Nestor & Katerina Gasset
International Properties and Investments LLC - Wellington, FL
Realtors, Wellington Florida Homes For Sale

Hi Ginny! Great advice to share to your consumers. As an expert North Kingstown Short Sale Agents, you do an excellent job in keeping your clients informed and guided. Thanks for sharing.

Dec 31, 2011 12:32 AM #24
Rainmaker
1,105,757
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Donna, good for you...personally it has not been my buyer but an offer on a home I list that has been the issue...people need to truly hear the facts.

Carla, I think it means emphasizing & that straight in the eye look!

Katerina, it is a must if we are not to be spinning our wheels for sure. 

Dec 31, 2011 07:15 AM #25
Rainer
124,789
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Great post. We definitely need to over communicate the idea that no credit changes means no credit changes for our clients, especially when buying a home! Thanks for sharing. Great perspective.

Jan 01, 2012 11:30 PM #26
Rainer
87,133
Stephanie Anson
Anson Properties LLC - Gainesville, FL

Ginny, what a funny and well-written article, but SO TRUE! Great advice. Thanks for sharing your expertise as a North Kingstown short sale agent!

May 01, 2012 06:27 PM #27
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Rainmaker
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