THE FIVE CARDINAL SINS FOR BUYERS

By
Real Estate Agent with Coldwell Banker Vanguard Realty
http://actvra.in/Dgc

THE FIVE CARDINAL SINS FOR BUYERS

1. MAKING A LARGE PURCHASE.
2. QUITTING YOUR JOB.
3. PAYING OFF A COLLECTION.
4. CLOSING A CREDIT LINE.
5. OPENING A NEW CREDIT LINE. 

Once a Buyer enters the loan underwriting box, the best advice is not do change ANYTHING with their financial picture.

Banks look at the ratios of debt to income, reserves, credit scores, job history, and who knows what else? Sometimes it feels like blood type, paternal lineage, and Facebook page go into the mix.

What many first time homebuyers do not realize and even seasoned buyers or owners re-financing their homes, is that their financial picture needs to remain stable throughout the loan process.

Any change in the picture, such as buying a new vehicle, quitting a hated job, even paying off an old collection debt to make a 'clean slate', or opening or closing credit lines can play havoc with the ultimate goal of a loan approval and getting into that new home.

It may not make sense, but paying off a collection or closing a credit line will actually make your credit score go down. Making a major purchase and changing your income to debt ratio may disqualify you from the loan that you qualified for last month. Quitting your job can reduce your income below the level you need to get a loan. Getting a new job with less income can have the same effect. And job history can go down the drain with a change of type of job.

When you are in the process of obtaining a loan, call your lender if you are thinking of any of the above. These are the Five Cardinal Sins for Buyers and we don't want our Buyers to commit a single one! 

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About the Author: Sharon Alters works with her husband, Frank. They are in the top 5% real estate agents for production in the Jacksonville Florida area, specializing in Military and Corporate Relocation in the Fleming Island, Orange Park, St. Johns, St. Augustine and Beaches areas. Their local knowledge can help Relocating Buyers find the perfect lifestyle, whether it is a Castle on the Ocean, or a Cottage in the Country. 

Call/text 904-673-2308 or sharon@teamalters.com

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Amanda S. Davidson 06/16/2012 08:05 AM
  2. John McCormack 07/01/2012 07:39 AM
Topic:
Home Buying
Location:
Florida Clay County Fleming Island
Groups:
BananaTude
"Whacked"!!!
Advice for Buyers
Bartender, Make it a Double
Buyer Information - What Buyers Need to Know in Today's Market
Tags:
buyer tips

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1,475,023
Anna Banana Kruchten
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Sharon and Frank this is excellent advice. Agents sometimes forget to tell buyers this 5 very important issues and it can break the deal for them.  We all should reblog this one!

 

Featured in BananaTude


Jun 15, 2012 06:13 PM #1
Rainmaker
565,501
Kathy Sheehan
Movement Mortgage 770-634-4021 - Atlanta, GA
Branch Manager

I actually have a list of do's and don'ts that I send to my clients.  It happens more often than you think!

Jun 15, 2012 06:39 PM #2
Rainmaker
235,283
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

Great advice.  My husband and I are refiancing and found there was an known collections about of $82. I wanted to kill him when he told me he just 'paid it off'! Luckly, it only affected his score and only one of the 3 credit agencies. I don't know if it's possible to get it off his record now that he has paid it.

Jun 15, 2012 09:08 PM #3
Rainmaker
980,303
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I have been giving folks a detailed do's and don't's list for years and still folks would do something that was on the list that created a problem. So, I started going over the list, item by item, have never had a problem since.

Jun 16, 2012 02:12 AM #4
Rainmaker
543,594
Amanda S. Davidson
Living A Dream Real Estate - Alexandria, VA
Your Northern Virginia Realtor

Great post Sharon! I once had a client buy a car a week before closing...killed the entire deal. I'm re-blogging :) Nice work!

Jun 16, 2012 08:03 AM #5
Ambassador
592,931
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

Excellent post and so timely.  I've got two new homebuyers getting ready to take the plunge.  Important to share with them.  Thanks.

Jul 01, 2012 07:41 AM #6
Rainer
80,317
Jay Jones
Keller Williams Tri-Lakes - Branson, MO
This was a nice educational post. I can use this with a few of my current clients. Thanks
Jul 01, 2012 08:04 AM #7
Rainmaker
979,170
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Anna, thanks for the Feature :)

Kathy, better to be pro-active than reactive - would love it if you shared your list!

 

Jul 01, 2012 11:16 AM #8
Rainmaker
979,170
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Jenny, it is my understanding that it will be there for the 7 year duration just like any other new credit event. That tactic is definitely whacky and should be changed. Let us know if you get it off.

Joe, I think going over the list is key. People don't like to read anymore.

Jul 01, 2012 11:18 AM #9
Rainmaker
979,170
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Amanda, such a great but sad example! This past week I had a closing where the Buyers were asked to sign that they had not taken on any additional liabilities. They both looked at me and breathed a sigh of relief. They were about to go buy a bunch of furniture when we spoke and I reminded them not to change anything until closing. :)

 

Jul 01, 2012 11:19 AM #10
Rainmaker
979,170
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Mona, it's important to let them know. Their lender probably will, but there is so much coming at them at once, it's easy to forget.

Jay, thanks for stopping by and hope it helps them.

Jul 01, 2012 11:21 AM #11
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