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Ma'am, Step away from the furniture!

By Marcie Sandalow

Real Estate Agent with Marcie Sandalow, Compass 301.758.4894

May 19, 2010 08:34 AM

Ma'am, Step away from the furniture!

Put the couch down. The Washington Post just reported that lenders, effective June 1, will be running a final credit report on purchasers just prior to settlement. That's in addition to the preliminary one they run to qualify you for the loan.

And it's not just for purchases. If you open a line of credit, let's say, at Ethan Allen, in anticipation of your big move, you could be in some hot water (especially if you spring for a hot tub before move-in day).

My buyers seem to be a pretty well behaved bunch, thus far. But tales in the office include some folks who bought a big fancy car after being approved for a loan, but before settling on the new property. Let's just say that they didn't move in as planned.

So, as much as it might pain you, save the big purchases until after you are safely and soundly in your new home.

If you care to take a walk down the lane of consumer restraint (sorta), give me a call.

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Jon Budish

Resident Realty - Fort Collins, CO

When I'm working with buyers I always ask them to refrain from any credit spending until after closing.

May 19, 2010 08:37 AM

Randy Schultz

(ABR) McLeRoy Realty, Inc. - Zebulon, GA

REALTOR, ABR, ePro

Thanks for the heads-up, Marcie! I will make sure that happens from now on!

May 19, 2010 08:43 AM

Malcolm Johnston

Century 21 Lanthorn Real Estate LTD., Trenton, Ontario - Trenton, ON

Trenton Real Estate

Indeed, buyers should wait until the deal has closed before using up their credit. It could jeapordise the financing.

May 19, 2010 08:50 AM

Marcie Sandalow

Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD

Bethesda Chevy Chase DC real estate

Thanks, Jon, Randy and Malcolm. I've always cautioned buyers not to go on a crazy spending spree just before settlement... this just cements that advice.

May 19, 2010 08:57 AM

Troy Funk

Allison James Estates & Homes, Sarasota 941-957-3737 - Sarasota, FL

Broker / Associate

Common Sence is not always Common. It seems that we have to constantly educated our clients on what they should and "Should Not" do.

May 19, 2010 11:31 PM

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

WOW Marcie, ain't this the truth? Even after being told numerous times, some folks just can't seem to control themselves until after the closing. My own Step Daughter and her husband did this but at least they had the cash in excess to work with. It still scared me half out of my wits because we all know if for some reason the Mortgage Lender found out and refused to close it would have turned out to be the evilStep-Mother's fault, He he he he

May 20, 2010 02:59 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

Well, you beat me to it! That was a really interesting conversation.

May 20, 2010 11:26 AM

Bob Willis

Berkshire Hathaway HomeServices California Properties - Orange, CA

Orange County & L.A. County Real Estate Agent

Indeed. No major purchases of any type until after you move into your new home. Let's make sure you do get into that home.

May 20, 2010 11:27 AM

Hannah Williams

HomeStarr Realty - Philadelphia, PA

Expertise NE Philadelphia & Bucks 215-820-3376

Marcie...I always make sure I repeatly tell buyers not to make any purchase's of any kind until after settlement..I also make sure I explain why..

HelpfulHannah

May 20, 2010 04:06 PM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Marcie - I warn buyers about this but some do not listen. Things are getting tougher and there are more touch points by the banks in the transaction. I expect it will only get tougher.

Many also check employment at the last moment, like the day before closing. I've had lenders ask for pay stubs and more at the 11th hour.

Jeff

May 20, 2010 04:19 PM

Marilyn Boudreaux

Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA

Lake Charles LA Century 21 Realtor

LOL Step away from the furniture I love it! My husband is a loan officer and always cautions those buyers no matter how excited you are about your new home, WAIT because anything can happen and Banks are re pulling credit prior to closing. The furniture will be there after you get your keys!

May 20, 2010 06:46 PM

I was wondering why all of a sudden this post was getting some attention... and I saw that Pat Kennedy had kindly re-blogged. Thanks, Pat!

Jeff- your employment warning is timely. I've only had one deal where a job loss interfered with closing. It wasn't a lot of fun. I imagine it's happening with a little more frequency these days.

May 21, 2010 12:27 AM

Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

Marcie: Great advice to potential buyers out there. That final credit check can really do a number on folks who may think it's no big deal to sign up for those consumer cards in anticipation of the big move.

May 21, 2010 02:09 AM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Hi Marcie! We've been seeing this for the past year with our lenders and have just added new 'instructions' for pre-buyers packets--you are to buy NOTHING but, food prior to Closing--NOTHING! If in doubt, CALL ME to ask! If you need a new dress, CALL ME! LOL

May 21, 2010 04:35 PM

Lori Churchill Cofer

Beasley Realty - Pullman, WA

Realtor - 509-330-0086 - Pullman, WA

Marcie,

Good information that buyers need to know. Can't emphasize this enough!

May 22, 2010 04:38 AM

Chris Ann, Debe, Lori- thanks for weighing in. It's a minefield out there, eh?!

May 23, 2010 02:22 AM

Pete Xavier

Investments to Luxury - Pacific Palisades, CA

Outstanding Agent Referrals-Nationwide

"Ma'am, step away from the furniture!" Just love that line!

Feb 22, 2013 02:56 PM

Ma'am, Step away from the furniture!

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