With many buyers being close to the maximum debt-to-income ratio with their financing, it has become critically important that once a buyer has begun the process of securing a mortgage they must exercise absolute restraint when it comes to making purchases of any kind outside the typical and essential living expenses.
Due to new regulations, lenders are now having to re-pull credit report information just prior to closing. Changes in your credit can result in a re-underwrite, the need for additional documentation, or suspension of loan closing.
This means no new cars, motorcycles, furniture, appliances, wedding rings, vacations, or anything else that could potentially edge the debt level to one that is unacceptable for the financial institution. Avoid the temptation to accept the "10% off your store purchase by applying for a store credit card today" sales pitch.
It may seem foolish, but this is happening often and it is delaying and ending real estate purchases. Realtors and mortgage representatives should advise buyers to wait. Once the property has closed, then they can go ahead and make that much-awaited purchase.
And above all else, this is no time to be changing jobs (30-day pay stub requirements are being enforced)!
REALTOR®, ABR, e-PRO, IMSD, SRES, SRS
Chris K. Canfield
REALTOR®, ABR, CRS, e-PRO, GREEN, SRES