Home Buyers Beware of this Pitfall
In over 20+ years of selling residential real estate I sometimes forget to tell my home buyers the “one thing” NOT to do. What is that? Do NOT make financial changes without consulting your lender and Realtor. Why? Because it could affect your loan to income ratio and knock you out of the sale.
1. A client who was close to the qualification line got excited and ordered all new appliances for his new home before closing. The panicked lender called and told him to cancel the order because it just showed up on his credit. By the way, the lender checks your credit the day before closing.
2. Another client had a line of credit on there first residence. After getting a pre-approval and going into escrow on a replacement home, they withdrew a large amount from the credit line. Not good.
3. Here is another that seems to make sense on the surface. My client who worked in the tech field was in escrow to buy a home. He received an offer from a competitor at a much higher salary. Good, right? He took the job and the day before closing the lender called his employer who says, “he quit”. Alarm bells went off and the closing was cancelled. It took a couple more weeks to have the lender verify the new job (thankfully in the same field) and resubmit to the underwriter. He did get the loan but but in a completely different time frame which of coursed fouled up everyone’s moving plans, truck rentals, etc.
Your lender and Realtor are your partners. Stay in touch – communicate and don’t make a move on your own.
Ps – Be careful using a totally on-line real estate system which has employees who are green and who don’t give advice because it is not part of their low priced plan.
I am in my 22nd year of doing business in residential real estate in two states and multiple counties. I survived the downturn of 2007 and have extensive experience in short sales, foreclosures, fast markets and slow markets. My experience will make YOU money and possibly save your bacon.
Ron Buck, Keller Williams Laguna Niguel