If you are looking to buy a house, then DON'T DO THIS!!!

By
Real Estate Agent with ULTIMA REAL ESTATE 0509570
http://actvra.in/55gk

If you are looking to buy a house, then DON'T DO THIS!!!

 

Make a Car Purchase Or Lease 

 

(Small Print - It looks good and inticing, but don't do it!!!)

 

This message is for ALL of the BUYERS out there.  

It doesn't matter if you are a Doctor

making hundreds of thousands of dollars a year,

or if you are making $20,000 a year or less.  

The number one rule in buying a house is

DO NOT BUY ANYTHING ELSE UNTIL AFTER CLOSING.  

Of course you can buy groceries, and gasoline, but what I mean is 

 

DO NOT MAKE ANY BIG PURCHASES PRIOR TO CLOSING.  

DO NOT GO AND BUY A NEW CAR, AN RV, A TRAILER, FURNITURE, APPLIANCES, NEW CLOTHES, A FOUR WHEELER, A JET SKI, A BOAT, ANOTHER PROPERTY, A NEW BUSINESS, A HELICOPTER, A JET,

AN AIRPLANE, DIAMOND RINGS, GOLD JEWELRY,

A COMPUTER, A TELEVISION, A HOT TUB, A POOL,

AN ELEPHANT,

BASICALLY ANYTHING THAT WOULD ADD TO YOUR CREDIT REPORT AND CHANGE YOUR CREDIT SCORE, OR ADD TO YOUR DEBT RATIO!!!!!

 

I had this happen to me a few years ago.  

The buyers were looking at buying a $50,000 condo

and they kept telling me they were staying in an RV.  

I figured the RV looked like something

from National Lampoons Christmas Vacation -

however, I was very wrong.

 Approximately 3 days before closing,

the lender pulled their credit again

and saw the RV payment,

that was the same amount as the condo payment was going to be,

and the loan was rejected.  

 

 

Today I found out that my buyers,

who are set to close at the end of the month,

traded in their vehicle and got a new vehicle lease

5 days prior to the contract going in on the house.

 

Although the buyers were informed

not to buy anything prior to closing,

they failed for follow the advice.  

 

Needless to say,

the buyers now will not be purchasing that property

because they no longer qualify for the loan.  

 

 

 Don't be like my buyer, and devasted because someone sold you a vehicle    when they knew you were looking to purchase a home.  

Sometimes you just can't have it all at once.  

You can buy these things later after your home purchase

but when in the buying a home process,

stay focused on your goal -

to be a home owner and don't get distracted.

 

If you are unsure about something,

always talk to your lender or Realtor first.

A professional Realtor should be able to give you

sound advice when purchasing a home.  

Make sure you choose your agent wisely,

and get someone who has experience.  

You want things to go as smoothly as possible

and had I known the buyer was thinking of doing this,

I would have told them absolutely not,

and to wait until their home purchase was final.

 

Brenda J Andrew - Realtor in Corpus Christi TX - Looking out for  you!

Http://www.homes-corpuschristi.com

 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Tags:
home buying
home buying in corpus christi

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Rainmaker
1,007,056
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

How frustrating! Buyers should really hold off buying anything more than groceries until they've closed!

Jun 20, 2017 03:14 AM #32
Rainmaker
2,484,102
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Yes, this can be a big issue, especially for 1st time buyers who are way more likely to swing that ratio.  I would warn my flooring clients about this if they were about to buy a home.  We would often wait for the deposit until after closing.  (Of course for some of the extremely wealthy customers this was a non issue, esp if they were buying w/ cash).  But, for 95% of the people, just wait.

Jun 20, 2017 03:37 AM #33
Rainmaker
1,339,705
Lise Howe
Long and Foster - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I just had this happen with a buyer on my listing - no sale - back on the market! 

Jun 20, 2017 03:44 AM #34
Rainer
94,748
Mega Team Real Estate
Realty ONE Group Alliance - San Mateo, CA
San Francisco and Peninsula Real Estate Concierge

Great advice! Thanks for sharing this!

Jun 20, 2017 03:59 AM #35
Rainmaker
2,617,416
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Brenda. Oh no. I am always taken back by buyers who simply refuse to listen. Sorry this happened to you.

Jun 20, 2017 05:08 AM #36
Rainer
187,219
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

Great reminder.  I bring this up once a buyer is under contract.  It is my hope that the lender is offering the same advice and that hearing the "Don'ts" from different people will make it stick.

Also, don't quit your job at the closing table until you know that the loan has funded.  True story!!  

Jun 20, 2017 05:33 AM #37
Rainmaker
1,837,257
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Oh boy what a hard lesson to learn. Congrats on the well deserved Feature!

Jun 20, 2017 05:53 AM #38
Rainmaker
197,338
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

I just had this conversation with a buyer last night.  Folks get excited about new furniture and appliances or their new home.  This is always a great reminder for buyers at ay pricepoint!

Jun 20, 2017 06:50 AM #39
Rainmaker
45,263
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

OMG HAve we all been through this?  My buyer bought a car even though I told him not to buy anything, not even a washer dryer for the house.  He thought it was ok, since the car was for his wife, not for him... but it was purcahsed in his name.  Blah!

Jun 20, 2017 07:32 AM #40
Rainer
227,689
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

I used to work with credit challenged people who were looking to get back on track.  That was a BIG no-no.  Never buy anything big or change your cash situation until after closing.  But some just don't get it.

Jun 20, 2017 07:40 AM #41
Rainer
76,759
Patrick Willard
Rio Rancho, NM

I've seen this happen many times, and not just people buying cars but I had a friend, a fellow agent in the same brokerage, that had a buyer skip two car payments betwen contract and closing (it didn't close). I had a credit challenged buyer that I worked with for months trying to get their credit score up and he took his step son out car shopping. They didn't buy anything but he allowed several dealerships to run his credit, which hit his score and caused a delay of several months. 

Back when I bought my first house my agent almost had a stroke when we showed up for a house viewing appointment in a car we just bought (it was a used car I paid cash for and it was cash I did not need for down or closing). 

Jun 20, 2017 08:11 AM #42
Rainer
364,473
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Brenda,

So true. I tell this to my buyers, but once almost messed up my own refi by putting a vaccuum cleaner on a new store credit card, because they offered a 15% discount. Was not aware that something as benign as that could make trouble.

Jun 20, 2017 08:14 AM #43
Rainmaker
161,525
Cheryl Dukes . . . . . Intown Atlanta
Solid Source Realty, Inc. - Atlanta, GA

A lesson in learning the hard way.

Jun 20, 2017 08:29 AM #44
Rainmaker
374,575
Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
Realtor, In Tune with your Real Estate Needs

Painful way to learn.  Yes, I too have had buyers do this - very frustrating as this is very avoidable!

Jun 20, 2017 11:47 AM #45
Rainmaker
264,062
John Wiley
Jones & Co. Realty - Cape Coral, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

Brenda, this topic can never be repeated enough, as you point out.

Buyers, seem to think that since they have been pre-qualified that they are home free. What does not seem to sink into their heads is the fact that the Lender will pull their credit again with hours of closing.

This failure to understand has killed a lot of people's dreams.

I often wonder where they put their new furniture when they fail to get a house???

Jun 20, 2017 12:57 PM #46
Rainmaker
542,311
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Have heard this over and over and as you say it doesn't matter if you are a Doctor or a CEO kep your wallet in your pocket and don't spend money or take out any new lines of credit for anything however enticing it is.

Jun 20, 2017 01:05 PM #47
Ambassador
2,958,178
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Brenda- I think this can't be said enough and I like the point you made that it doesn't make any difference if you're a doctor or how much you make...just don't!

Jun 20, 2017 06:29 PM #48
Rainmaker
821,974
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent advice Brenda. That final credit pull can be tricky and some buyers just can't resist!

Jun 20, 2017 08:30 PM #49
Rainmaker
24,187
Karen Sackett
BizEBee Virtual Assistants LLC - Suffolk, VA
BizEBee Business Services

Great advice! This actually happened when I was selling my home and the buyer almost wasn't approved last minute. Luckily they were able to get a co-signer but it was a close call!

Jun 22, 2017 11:11 AM #50
Ambassador
3,210,763
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

We have to say this more than once, the lender has to say it and still some buyers forget or think it doesn't matter. Good post, Brenda.

Jun 29, 2017 08:41 PM #51
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Rainmaker
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Brenda J. Andrew

Professional Realtor in Corpus Christi, TX
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