Buying a house is awesome. I mean, really who doesn't want to own their
own home? All you need to do is get pre-qualified for a mortgage and
start shopping (with Hughes Homes Realty of course).
I can't begin to tell you how many times we have had a buyer who has
found their dream home only to have the deal go down the toilet right
before closing. Now that doesn't sound so awesome does it? Yeah, well
it happens more times than I care to remember and for the stupidest
reasons.
So buyer's, pay attention. I'm going to give you some tips that may
save your sale. And though they may seem simple, you would be surprised
how many people's brain cells start to diminish once they have a new
home in their sights...
1) Big Spender - Don't buy anything. I'm serious. Buy your everyday
stuff i.e. groceries, lunch, beer whatever you do in a "normal" day.
Don't go out and buy a new car to match your new garage. Don't go and
buy all new furniture for the new house you didn't close on yet. Don't
go to Best Buy and finance a fancy new washer and dryer or even a crappy
new washer and dryer. Your lender will pull your credit report right
before closing to double check everything. They don't care that you got
an amazing financing deal of 0%, they care that now your debt to income
ratio is screwed up which just may kill the deal. Just DON'T buy
anything!!!
2) Give Me Some Credit - Or don't. Don't open/close/charge up credit
cards. You got approved for a mortgage for a reason. They like the
look of your credit card balance and your debt to income ratio as it
stands. Don't put anything outrageous on your credit cards. Don't open
OR close any accounts. When you try an open a new card, they pull your
credit report. Don't do it. You leave that credit report alone. Also
don't pay off huge chunks of your balance unless your mortgage broker
tells you to.
3) Keep Your Green And Just Be Mean - Be a meanie. We recently had
someone who decided to give a family member a $5,000 loan. It was a
nice gesture and I'm sure the family member was overjoyed at the
generosity of my buyer. However, it was a mad scramble at the last
minute to get around the fact that he had $5,000 of cash missing from
his account. Oops. Also, don't co-sign for anyone. That too will be a
problem and go against your debt to income ratio. It doesn't matter if
your son wants a new Toyota, it will not bode well for your debt to
income ratio. So just don't give your money away.
4) Don't Quit Your Day Job - Really don't quit it. In the past I have
had buyers that decide to make a career path change right in the middle
of a deal. I understand that you may feel like mixing it up and
quitting your career as a CPA to pursue being a rock star. But it's just
not the best timing. Keep your job, you can quit and be Jon Bon Jovi
after we close.
5) You Gotta Pay To Stay - Pay your bills. Just because your closing
is on the 10th of the month and your car payment is due on the 1st
doesn't mean you shouldn't pay it. Once again, your lender will pull
your credit right before closing and if you have late payments on there,
you can kiss your new home goodbye. Then hopefully you have a nice car
cause you might be living in it... So yes, pay your bills, water,
power, phone, credit cards, cars etc. etc.
Lastly, when you are filling out the paperwork to apply for a mortgage,
be honest. You need to let us know if you pay child support, or you're
getting a divorce, or you robbed a bank, or you're in the middle of a
bankruptcy. No one will judge you but we do need to know. It's much
easier for us to help you if you're straightforward from the get go
rather than the week before closing. I mean we're good but not good
enough to magically make you a millionaire on paper an hour before we
close.
So what did we learn here? Don't buy anything at all. Treat your
credit like a box of scorpions, just don't touch it. Don't be nice,
keep your money. Don't be a rock star. Pay your bills, all of them.
And just ask us before you do anything that may mess up your financing.
Chances are we are going to tell you no but its for your own good...
If you have any questions about Mortgages you can contact my own personal Mortgage Guru:
Brad Siebert
The Mortgage Firm
407-353-3750
bsiebert@themortgagefirm.com
