The Villages Florida Area Real Estate: Buying a Home? Don't buy Anything Else Until After you Close!

Buying a Home? Don't buy Anything Else Until After you Close!

Buying a Home?  Don't Buy Anything Else Until After you Close!

I have posted about this in the past, but as we head full speed into the Spring real estate buying market, I wanted to be sure to remind buyers that if you are buying a home, you should not buy anything else until after you close.

Buying a Home?  Don't Buy Anything Else Until After You CloseWith 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 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 a loan closing.

This means no new cars, motorcycles, furniture, appliances, pets, wedding rings, vacations, or anything else that could potentially edge the debt level to one that is unacceptable for the financial institution.   Deny the temptation to accept the "10% off your store purchase by applying for a store credit card today" sales pitch.

It may sound 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.

I heard of one buyer who decided to close an old credit card account, and that put a dent in her credit score.   So don't close a credit card account either.  Try to keep everything looking the same as the day you were prequalified.

And above all else, this is no time to be changing jobs (30-day pay stub requirements are being enforced)!

Financing rates are still fantastic and home prices are low, so if you want to take advantage of this great opportunity and are buying a home; don't buy anything else until after you close!

 

Chris K. Canfield

REALTOR®, ABR, CRS, e-PRO, GREEN, MRP, SRES 

Coldwell Banker Residential Brokerage

2890 E. Skyline Drive, #250

Tucson, Arizona  85718

 

 

Mary-kay Canfield and Chris Canfield ActiveRain ProfileE-mail Chris and Mary-kay Canfield

 

 

Comment balloon 19 commentsChris Canfield • March 03 2011 01:13PM

Comments

Buyers don't understand that until they close they shouldn't incur any more debt. Don't go buy a car because it could cost you your potential home purchase.

Posted by Victor Zuniga (Berkshire Hathaway Home Services California Properties) over 7 years ago

Some Great Advice Chris. I always remind buyers about these things. Every once in awhile, you might find a couple folks, who did not listien.

Posted by Jerry Newman, Texas REALTOR, San Antonio Military Relocation (Brown Realty, 210-789-4216,www.JeremiahNewman.com) over 7 years ago

Hi Victor - This is exactly why we as REALTORS and their mortgage professional should be reminding them!

Hi Jerry - Good for you for reminding them!

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

I've blogged on this before as well, but it's a great point that bears repeating. Nothing can't hurt a deal faster, than a buyer that inadvertantly changes their credit status! I'm suggesting this one.

Posted by Larry Atkins (State Wide Realty Co.) over 7 years ago

Hi Larry - Thanks for the "suggest."  It is such an important lesson, and one you don't want to learn once you are in the process!!

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

Chris -- I JUST yesterday reminded a client to hold off all big purchases until after the closing.  Just before Christmas, I stopped another buyer from buying a big screen tv as a Christmas gift to his son. It doesn't sound foolish at all.  Buying big ticket items could severely compromise the loan.

Posted by Barbara Altieri, REALTOR-Fairfield County CT Homes/Condos For Sale (RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate) over 7 years ago

Chris, this is great advice, and I don't think you can ever say it often enough! I can add one thing - don't take a leave of absence, even a paid one, until after closing! (had that happen once) Nice post!

Posted by Rose King, Friendswood / Pearland / Houston Bay Area (David Tracy Real Estate) over 7 years ago

Hi Barbara - I hope the son got the big screen TV after Christmas!  : )  Otherwise, he now knows WHY he didn't get it--it will all be your fault.  Thanks for your comment!

Hi Rose - Wow--a paid leave of absence?  What next!?

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

Very good advice for home buyers. It is best to put a hold on all financial transactions until after settlement.

I posted your blog on my Facebook page.

 Life is better when there are flowers to photograph!

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) over 7 years ago

Chris, this is beyond important advice for any home buyer in the market. I advise my clients when they tell me they are 3 to 6 months out to look at their credit report and dispute any errors. The next thing is to talk to a lender and learn about their buying power. Every local market has opportunities now for those who are prepared to buy!

Posted by Emily Medvec Qualifying Broker, Realtor | Serving Santa Fe & Northern NM (Hello Realty Partners) over 7 years ago

Hi Roy - Thanks very much for posting me on your Facebook page!

Hi Emily - There are great opportunities, and you want to be sure you are ready to take them on.  So watch that credit!  Thanks for commenting!

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

Great advice for sure!    I had one a few years ago that the buyer applied for a gas card so she could get a free car wash!  nearly undid the loan!   uuuggghhh    It did close but not with a few grey hairs!   LOL

Posted by Deborah Byron Leffler BzyBee Real Estate Lady! (Keller Williams Realty Boise) over 7 years ago

Good Morning, Chris. this is great advise!  I have seen this happen through the years.  Enjoy this great Friday!

Posted by Barbara Hensley, Homes for Sale in Rockwall County, Texas (RE/MAX Properties) over 7 years ago

All good advice, they get anxious to buy the new furniture or that new car and then have the bills but no home.

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 7 years ago
Hi Deborah, Now that takes the cake--almost didn't get the house because of a free car wash!!
Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

Hi Barbara - Maybe it is time for a form that all buyer have to sign (but it really should be presented to them by the mortgage company, don't you think?).

Hi Ed - Yes we all get anxious to purchase things for our new home (with us it was drumss of wallpaper stripper, blades for ripping up carpet, hardwood flooring cleaner, and gallons upon gallons of paint).  But it is best to have the home ready to put them into than to have the items themselves!

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

Great information Chris!  It's so tempting to make "home" purchases during the time between loan application and closing, and it's so important NOT to.

Posted by Donna Foerster, Metro Denver Real Estate Agent (HomeSmart Realty Group) over 7 years ago

Hi Donna - Buyers must learn to resist that temptation!  : ) 

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) over 7 years ago

I agree its the simple things that get us many times before the close...good post.

Posted by Paul Gapski, 619-504-8999,#1 Resource SD Relo (Berkshire Hathaway / Prudential Ca Realty) over 6 years ago

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