BUYERS – DON’T DO THESE THINGS IF YOU WANT TO CLOSE

Posted by Lise | Filed under: Buyers

It is  not enough to get the Bethesda home for sale under contract with that pre-approval letter from your lender.  You have to keep your credit intact between your initial loan application and settlement to close on the DC condo.  Buyers, and not just first time home buyers,  commonly do things that jeopardize the safe and timely close of their mortgage loans because no one ever told them about the bomb craters out there waiting to derail their settlement. The “don’t do” list includes several things that adversely impact credit scores, and your lender may run your credit more than once, so keep it pristine – at least until after settlement!  Then go buy that new furniture and appliances of your dreams!

CHANGES TO THE TRANSACTION

1)  Be sure to tell  your loan agent of any changes to the transaction. Last minute changes such as lender holdbacks, seller credits or required termite work can create havoc with closing dates or even require that the entire file be sent back to underwriting.  Seller Credits and required termite work can arise as the result of your home inspection and sometimes everyone forgets to mention it to the lender!  Bad news!

CHANGES IN DEBT LEVELS OR CREDIT SCORES

2)  Don’t consolidate credit card debt from several cards into one. A new card with one balance at the limit GIVES a lower credit score than three cards, each with balances below the limit.  Quick as a flash, your condo search in DC is going to start over again!

3) Don’t forget to make the payments on any of your present loans or credit cards. This is obvious, but there’s a lot going on once you start the process and once in awhile it happens – in the rush of events you forget to make a payment. And since credit reports have a normal 120 day shelf life, it is quite likely that an updated report will be necessary before finding and closing on a house. If a late payment shows up, this can put the loan (and escrow close) in jeopardy.  Even  homes in Potomac for sale have to follow these rules!

4)  Don’t respond to “you are pre-approved for a credit card” mailings. Each credit inquiry lowers your credit score even if you do not buy anything.

5)  Don’t even go shopping for a big ticket item like a car or appliances, not to mention, don’t buy them. If you must visit the showroom, don’t give your social security number to anyone. This enables the dealer to check your credit. Each credit inquiry lowers your credit score even if you do not buy anything.

6)  Don’t incur any new debt. This increases your debt-to-income ratio, potentially reducing the amount you can borrow. It can also lower your credit score because new debt has a negative impact on credit scores.

LIFESTYLE CHANGES

7)  Don’t quit or change your job. Lenders are likely to call your employer just before the loan records to verify you’re still there. If you aren’t, the lender will stop the loan from recording.  How else will you afford the Kenwood Forest homes for sale?

8)  Don’t file for divorce. Once you file for divorce, most lenders will not make a mortgage loan until the final decree, setting forth settlement terms, is recorded.  That DC condo for sale is pretty sweet for your new life, but coordinate with your lender!

9)  Don’t leave town without leaving a contact phone number until all loan approval conditions are met. You may be needed for a decision or to provide additional documentation.

TRANSFERS OF FUNDS

10)  Don’t sell stock for down payment without keeping a record of the liquidation. Same reasoning as 11) below.  Yes, you need the money for the Great Falls estate, but keep the paper trail!

11)  Don’t move money designated for down payment from one account to another. This creates confusion. If you move funds, advise the lender in advance and keep a detailed paper trail.  You have to be able to demonstrate to the lender the source of all your funds – whether it is for a home for sale in Chevy Chase or a foreclosure in Virginia.

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22 Responses

  1. Rex says:

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    good info….

  2. Richard says:

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    спс за инфу!…

  3. henry says:

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    благодарствую….

  4. homer says:

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    tnx for info….

  5. Chester says:

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    спасибо за инфу….

  6. Guy says:

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    áëàãîäàðñòâóþ!…

  7. ryan says:

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    áëàãîäàðñòâóþ!…

  8. Kyle says:

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    ñýíêñ çà èíôó!…

  9. roberto says:

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    áëàãîäàðåí!!…

  10. allen says:

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    thank you….

  11. arnold says:

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    áëàãîäàðåí!…

  12. Chris says:

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    thank you!!…

  13. Dustin says:

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    áëàãîäàðþ!!…

  14. Carl says:

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    tnx for info….

  15. jimmie says:

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    ñïñ çà èíôó!…

  16. Cameron says:

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    tnx for info….

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