Special offer

When To Maintain A Financial Holding Pattern In Real Estate

By
Real Estate Agent with Classic Realty Realtor

I received a phone call the other day from a Real Estate Agent friend of mine. He said, "David I just heard from the Loan Officer of one of my clients I'm working with". My Agent Friend continued on to state that his "Client (who was barely approved because of past Credit Issues) went out and spent a huge chunk of money on Credit! As a result, his Credit Score that was borderline, plummeted and is now below the acceptable level for a Mortgage". In other words, the deal his client thought he had was dead! This was all because of a stupid financial mistake, a very costly slip-up.

As I thought about my friend, his client and the dead deal they now face, I decided to sit down and write out some financial "Do's and Don'ts" for my own clients who have a Contract and are waiting to close. In fact, I would urge you who are reading this today and contemplating a Real Estate Transaction, to pay attention and abide by these Simple Rules:

1. Do Pay your Credit Cards on time (Now is NOT the time for a late payment)
2. Do not buy any BIG Ticket Items on Credit or Cash - (Example: Car/Furniture/Even Furniture for you NEW House)
3. Don't change Banks or Accounts (Loan Officers must look back over the previous months to track spending)
4. Never, never, never make a Job Change when in the middle of a Contract
5. Always Protect your Down Payment Money (Your Loan Officer will be checking the availability of funds before close)
6. Never co-sign for anyone, but especially when waiting for your Home to Close
7. Do NOT move money from Account to Account (You could sabatage the deal)
8. Do NOT let anyone run a Credit Check for you (This can change your FICO Score)

Finally, always remember that knowledge can be power when endeavoring to buy or sell Real Estate. If I can help you in this process, please Write or Phone me.

Comments (3)

Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I recently had a wanna be buyer tell me what her credit score was... but when I asked how she knew and she said because she purchased a new car two weeks ago I explained that likely her score was lower now and she got mad and left and told me I had no idea what I was talking about.  Wish I had seen this post before she stormed out. LOL

Apr 30, 2011 09:02 AM
Kathryn Acciari
Central One Federal Credit Union - Shrewsbury, MA
Mortgage Loan Originator

Why do people have such trouble controlling their spending?  Well, I can think of a few reasons, but it is frustrating to continually hear these types of issues  coming up.

May 01, 2011 01:39 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

These problems pop up time and time again. Every Realtor and loan officer should show your post to their buyers.

May 02, 2011 11:59 PM