Buy that ring or buy that home? Well if it is not an engagement ring, it might be that diamond ring or real estate?new sports car or SUV that captured your attention and just took that dealer loan out.  What did your loan officer tell you months ago about avoiding changes to your financial situation during your mortgage loan process period?

You did hear the loan officer when he said what not to do prior to closing on your mortgage?

 fancy car   Yes, you say, but you already applied for the mortgage so what's the difference? Anyway you just had to buy the ring because your fiance expected it.  Hmm, you really did not hear your loan officer did you.  No changes, means no changes if you want to get to the closing table and buy that new home.  You as the buyer have already botched your chance for now of procuring that mortgage commitment letter.  No buying right now.  Honestly, a paper cigar band might have worked half as well instead of the diamond for that wonderful lady?!

See the lender's underwriters do not like to see big changes in your credit right now.  Especially NOT an engagement ring on your credit card .  It is a red flag to them that you  spend money unwisely and without thinking.  Therefore, you are not seen as a good credit risk for paying on your mortgage and therefore not worthwhile lending to right now.   This is a reason that your real estate agent and lender talk into each of your ears about being careful with credit.   

 Guess what?  You will need to wait a good six months down the road now to do the mortgage process again.  And remember to hold that diamond next time. Buy that Ring or Buy that Home!

!!!!!!!!!!!!!!!!!!!!!!!

Ginny Lacey Gorman is a North Kingstown Realtor who works and knows the North Kingstown RI geographic area of homes for sale, schools, happenings, important tidbits of information and  businesses well.  Waterfront, water view, ocean front, luxury and coastal RI real estate are her specialty, so call Ginny for your buying and selling home needs. As North Kingstown short sale agents, she and her team helps clients navigate successfully the rough short sale waters throughout RI, contact Ginny if you are having trouble paying your mortgage.  When you are in need of an internet savvy RI realtor® who sells homes in this real estate market, call Ginny today at 401.529.7849.

This blog © and its contents is original to Ginny Lacey Gorman

Ginny L. Gorman a purveyor of Fine Waterfront RI Real Estate  

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich, Westerly RI and beyond ...  I sell dreams!  because there is no place like home...the RI Realtor in the Sparkly Red Shoes.

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Posted by Waterfront RI Homes for Sale | Rhode Island Coastal Real Estate Agent on 12/30/2011 06:10 AM   Comments (27)   Credit in the ActiveRain Channel   mortgage, credit  
Originally posted at: Ginny's RI House Hunt Blog: Buy that Ring or Buy that Home
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27 Comments on Buy that Ring or Buy that Home

20 Most Recent Comments Displayed Show All

DEC
30
2011
661,574 Points 17 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Great advice, Ginny - BUY NOTHING!!!!  is what I tell my buyers.   
7:56am • #8
264,513 Points 2 Featured Posts Outside Blog Attended Rain Camp

Ginny, that's really good advice. A roof over your head is a priority. The ring is a non essential luxury.
8:05am • #9
794,339 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Dorie, thanks for the boost...it got me to thinking about a squirrel in my basement we still haven't caught & squirreling away one's money!

Debbie, it just seems it doesn't go in that order anymore..best

Dagny, onward & upwards friend...

Ellen, if they only would remember that essential advice...
8:15am • #10
233,677 Points 36 Featured Posts Outside Blog Called Shot Master

Good Morning Ginny!    What a great blog!    Suggested!   I have had clients do this sort of thing even after "the talk".    They just don't get it... so, they don't get the house.  

 
8:16am • #11
953,318 Points 52 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ginny, great reminder to those buyers in the process of purchasing a house.   If their credit is close, it could bump them out of being approved!
8:36am • #12
932,846 Points 73 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I know this story...lost a buyer in 2010 because he didn't heed our advice...instead he bought a new Corvette.  He is still renting a home. 
8:36am • #13
378,688 Points 84 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ginny - I too have heard this story, but it still amazes me that  while someone's buying a home they go out and buy a car or an expensive engagement ring even after they are told no large purchases! I hope they really like that car - they might be living in it - lol. Hope you have a wonderful New Year!
8:59am • #14
794,339 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Carol Ann, i guess it is a talk you need to have more than once with buyers...Happy New Year!

Joan, I know that you share it so well...have a great 2012!

Anita, isn't it just amazing...some need to mature a bit more I believe!

Kristine, it is very true and I am going out with a bang it looks like!
9:04am • #15
1,049,290 Points 284 Featured Posts Outside Blog Called Shot Master

Ginny, A criticial item that too many forget about.  Buy the furniture, new car, ring, whatever, AFTER closing.  It's that simple.
9:29am • #16
644,401 Points 16 Featured Posts Outside Blog Called Shot Master

Good morning Ginny. Terrific post and very well stated. Sometimes our clients hear us but do not listen. Too bad for them. Great job. Suggested.
10:40am • #17
1,151,440 Points 86 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ginny, I think we all tell our clients that, but sometimes they just don't listen. I had a buyer disqualify themselves after 3 weeks when they came to a showing with a new car. I asked if they had talked to their loan officer since they bought the car, which they hadn't and the next day they were told that they do not qualify, nor will they qualify for some time. Harsh lessons.
2:31pm • #18
1,355,962 Points 242 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Ginny the reason you gave is a good one, but are a couple of more reasons why they should not buy the ring.  The extra debt could push the debt-to-income ratios over the top, also the extra debt could lower the credit score to the point that they are below the scores needed for the loan program.  People do dumb things all the time, but of course it is our fault because they will claim that they were never told to not do that.
2:38pm • #19
427,974 Points 23 Featured Posts Outside Blog Called Shot Master

Ginny....I think the house can substitute for the ring until AFTER the closing!  
4:26pm • #20
794,339 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

BLiz, amen, ament!

Sheila, it is true...sometimes it is okay to be a broken record.

Ed, isn't it true...I'm thinking they were born without ears perhaps..

George, thanks for expanding on it...i only shared 1 piece...excellent point!

Christine, oh you are a great buyers agent...
6:00pm • #21
214,974 Points 2 Featured Posts Hit Router Called Shot Master
Ginny, I was in that position with one of my buyers too. After getting their approval , the lender explained to my buyer that they shouldn't spend however that wasn't the case and we had to wait for a while to begin the porcess all over again.In the end I followed through with my buyer and now they do have their home but it was a long wait.
6:11pm • #22
179,072 Points 1 Featured Post Outside Blog Called Shot Master

Ginny - Great Point! Sometimes buyers don't realize their credit can be pulled right before closing and if they no longer qualify there's a good chance they won't get the loan.

Not to mention they sign their loan application saying they've not added debt and lying is fraud.

Like you I tell buyer's to wait. They can do what they want after closing.
10:02pm • #23
DEC
31
2011
1,549,853 Points 277 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hi Ginny! Great advice to share to your consumers. As an expert North Kingstown Short Sale Agents, you do an excellent job in keeping your clients informed and guided. Thanks for sharing.
12:32am • #24
794,339 Points 80 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Donna, good for you...personally it has not been my buyer but an offer on a home I list that has been the issue...people need to truly hear the facts.

Carla, I think it means emphasizing & that straight in the eye look!

Katerina, it is a must if we are not to be spinning our wheels for sure. 

7:15am • #25
JAN
01
2012
124,230 Points 3 Featured Posts

Great post. We definitely need to over communicate the idea that no credit changes means no credit changes for our clients, especially when buying a home! Thanks for sharing. Great perspective.
11:30pm • #26
MAY
01
2012
2 Featured Posts

Ginny, what a funny and well-written article, but SO TRUE! Great advice. Thanks for sharing your expertise as a North Kingstown short sale agent!
6:27pm • #27

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Waterfront RI Homes for Sale | Rhode Island Coastal Real Estate Agent

Ginny Lacey Gorman

North Kingstown, RI

More about me…

Phillips Post Road Realty -Waterfront homes, Short Sales

Address: South Kingstown,East Greenwich,Narragansett,Charlestown,, Jamestown,Exeter,West Greenwich,Warwick, North Kingstown, RI, 02852

Office Phone: (401) 884-4100 x 268

Cell Phone: (401) 529-7849

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