THE FIVE CARDINAL SINS FOR BUYERS

1. MAKING A LARGE PURCHASE.
2. QUITTING YOUR JOB.
3. PAYING OFF A COLLECTION.
4. CLOSING A CREDIT LINE.
5. OPENING A NEW CREDIT LINE. 

Once a Buyer enters the loan underwriting box, the best advice is not do change ANYTHING with their financial picture.

Banks look at the ratios of debt to income, reserves, credit scores, job history, and who knows what else? Sometimes it feels like blood type, paternal lineage, and Facebook page go into the mix.

What many first time homebuyers do not realize and even seasoned buyers or owners re-financing their homes, is that their financial picture needs to remain stable throughout the loan process.

Any change in the picture, such as buying a new vehicle, quitting a hated job, even paying off an old collection debt to make a 'clean slate', or opening or closing credit lines can play havoc with the ultimate goal of a loan approval and getting into that new home.

It may not make sense, but paying off a collection or closing a credit line will actually make your credit score go down. Making a major purchase and changing your income to debt ratio may disqualify you from the loan that you qualified for last month. Quitting your job can reduce your income below the level you need to get a loan. Getting a new job with less income can have the same effect. And job history can go down the drain with a change of type of job.

When you are in the process of obtaining a loan, call your lender if you are thinking of any of the above. These are the Five Cardinal Sins for Buyers and we don't want our Buyers to commit a single one! 

 

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About the Author: Sharon Alters works with her husband, Frank, and team member, Ann Dunsford Curley. They are in the top 5% real estate agents for production in the Jacksonville Florida area, specializing in Military and Corporate Relocation in the Fleming Island, Orange Park, St. Johns, St. Augustine and Beaches areas. Their local knowledge can help Relocating Buyers find the perfect lifestyle, whether it is a Castle on the Ocean, or a Cottage in the Country. 

Call/text 904-673-2308 or sharon@teamalters.com

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Posted by Sharon Alters 904-673-2308 Fleming Island FL Real Estate on 06/15/2012 06:05 PM   Comments (11)   Home Buying Tips in the Home Buying Channel   buyer tips  
Short URL: http://actvra.in/Dgc
This post has been included in Florida Real Estate News Clay County, FL Real Estate News Fleming Island, FL Real Estate News
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Post is included in group: Buyer Information - What Buyers Need to Know in Today's Market

11 Comments on THE FIVE CARDINAL SINS FOR BUYERS

JUN
15
1,117,045 Points 117 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sharon and Frank this is excellent advice. Agents sometimes forget to tell buyers this 5 very important issues and it can break the deal for them.  We all should reblog this one!

 

Featured in BananaTude
6:13pm • #1
413,197 Points 16 Featured Posts Outside Blog Called Shot Master

I actually have a list of do's and don'ts that I send to my clients.  It happens more often than you think!
6:39pm • #2
226,538 Points 9 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Great advice.  My husband and I are refiancing and found there was an known collections about of $82. I wanted to kill him when he told me he just 'paid it off'! Luckly, it only affected his score and only one of the 3 credit agencies. I don't know if it's possible to get it off his record now that he has paid it.
9:08pm • #3
JUN
16
497,151 Points 29 Featured Posts Outside Blog Called Shot Master

I have been giving folks a detailed do's and don't's list for years and still folks would do something that was on the list that created a problem. So, I started going over the list, item by item, have never had a problem since.
2:12am • #4
255,953 Points 9 Featured Posts Outside Blog Called Shot Master

Great post Sharon! I once had a client buy a car a week before closing...killed the entire deal. I'm re-blogging :) Nice work!
8:03am • #5
JUL
01
526,249 Points 46 Featured Posts Outside Blog Called Shot Master

Excellent post and so timely.  I've got two new homebuyers getting ready to take the plunge.  Important to share with them.  Thanks.
7:41am • #6
This was a nice educational post. I can use this with a few of my current clients. Thanks
8:04am • #7
873,128 Points 47 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Anna, thanks for the Feature :)

Kathy, better to be pro-active than reactive - would love it if you shared your list!

 
11:16am • #8
873,128 Points 47 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Jenny, it is my understanding that it will be there for the 7 year duration just like any other new credit event. That tactic is definitely whacky and should be changed. Let us know if you get it off.

Joe, I think going over the list is key. People don't like to read anymore.
11:18am • #9
873,128 Points 47 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Amanda, such a great but sad example! This past week I had a closing where the Buyers were asked to sign that they had not taken on any additional liabilities. They both looked at me and breathed a sigh of relief. They were about to go buy a bunch of furniture when we spoke and I reminded them not to change anything until closing. :)

 
11:19am • #10
873,128 Points 47 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Mona, it's important to let them know. Their lender probably will, but there is so much coming at them at once, it's easy to forget.

Jay, thanks for stopping by and hope it helps them.
11:21am • #11


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Sharon Alters 904-673-2308 Fleming Island FL Real Estate

Fleming Island, Orange Park, Jacksonville

Fleming Island, FL

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Coldwell Banker Vanguard Realty

Address: 3168 U S Highway 17 S, Fleming Island, FL, 32003

Office Phone: (904) 673-2308

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