Buy that ring or buy that home? Well if it is not an engagement ring, it might be that 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?
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.