The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CRSA, CSP, GRI, ePRO ®, REALTOR ®, RealtySouth
The opinions expressed here are my own and don’t necessarily represent those of HomeServices South.
It’s not over until…
You’ve been pre-approved and that low ball offer you made was accepted… Just 4 weeks until you close on your new home! No time to let down your guard…
Be aware that during the processing of your loan there are things that you can do or not do that could cause your loan to be disapproved or otherwise impact the ultimate and final status of your loan request. Now some of these may seem like no brainers… but I’ve seen them kill deals in the past… so a word or two of warning… Your Pre-Approval was conditional! To quote or paraphrase Yogi… It’s not over till the fat lady sings and your loan has been funded!
Just six weeks ago, we had a young client who failed to make a $24 credit card payment… That failure resulted in the loss of his approval and the $8000 first-time buyer tax credit. So what seems like a small thing can make a big difference in outcome!
It is common place for all of the facts that were checked at the time of the pre-approval to be re-verified just a few days, if not hours before closing! This includes your credit scores, amount of credit extended, income, employment, debt to income ratio, assets, etc…
With that in mind be aware of the following:
Don’t… Quit your job or get another job unless it is in the same line of work AND for equal or greater pay.
Don’t… Change bank accounts or transfer money within existing bank accounts.
Don’t… Make counter deposits at the bank for more than $500 which not attached to your pay.
Don’t… Purchase any other real estate
Don’t… Apply for additional credit of any kind.
Don’t… Co-sign a loan for anyone.
Don’t… Purchase an automobile or take on any additional debt… including buying new appliances or furnishings for your new home.
Don’t… Charge a large amount on existing credit cards or start home improvements or other projects that require you to open credit.
At the same it is critically important to…
Be sure to… Keep all accounts current… Mortgages, car payments, credit cards and any other debt.
Be sure to… Keep copies of all paycheck stubs and any statements on bills being paid off through the loan process.
Be sure to… Make payments on all accounts on or before the due date, even if the account is being paid off.
Be sure to… be ready for the unexpected!
A final word of advice… The rules for final approval are subject to change and believe me a change in the underwriting requirements are not at all uncommon. Surprise payments and bills may arise… You will not be allowed to put any of the expenses for closing on a credit card or otherwise borrow those funds.
Understanding that this is a fluid process your best course of action is to cut all unnecessary expenses, save every penny you can and respond to every request made by your lender as expeditiously as possible. The inability to follow these steps could result in the loss of that sweet deal!
May the market be with you…
