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Buyers: My Advice To You is "Don't Get Too Cozy on That Couch!"

By
Real Estate Agent with Keller Williams Heritage Realty

OK, I'll admit it. I'm a freak for details.

As a Buyer's Agent, I find that I often spend endless hours educating Buyers on what they SHOULD DO to insure that their home buying process is a success, as well as what they should AVOID DOING so that it doesn't blow up somewhere along the way.

One of the most common educational sessions I have with Buyers is in regards to the need for them to maintain the same or better credit score that they had when they received their loan approval letter (which is typically obtained weeks before they even saw their first house).

Quite frankly, I believe this to be one of the most under discussed topics in the home buying process...maybe because the REALTOR thinks that the Loan Officer/Lender is communicating it to the Buyer or maybe because the REALTOR assumes that the Buyer knows that if they buy that couch they got cozy on at the furniture store, that they might not qualify for the house of their dreams...even though they thought it was "safe" to go furniture shopping since they already had their approval in hand!

Regardless of who "should have" told the Buyer, it's too late once the damage is done.

So, my holiday gift to you is...If you are a Buyer who is considering purchasing a home it really is best if you do NOT:

  • Buy a new car
  • Buy new furniture
  • Go on vacation and charge everything to your credit card
  • Quit your job  
  • Spend your down payment thinking you'll replenish the funds when you get your "bonus"
  • Get married or divorced
  • and under no circumstances, fail to make payments on existing accounts or ignore "final notice" or "collection" letters

You see, a loan approval letter means that you were approved for the loan on the day that you applied for it based on your credit score, your income, your debt ratios and your ability to maintain those things (along with other things like funds needed to close, continual employment, etc) and ANYchanges in those factors MAY affect your ability to secure final loan approval!

As a full-time professional Real Estate agent in Seminole County, FL it's my goal to make sure that Buyers are well educated not only on the house buying process, but also on things that they can avoid doing that might make it a challenge to obtain financing days before closing.

For more helpful hints on purchasing a home by limiting the "stress factors", please subscribe to my Blog below.

If you or someone you know is seeking a professional, full-time REALTOR in Lake Mary, Winter Springs, Sanford, Oviedo, Sanford, Altamonte Springs, Longwood, Casselberry or Fern Park in Central Florida, I'd welcome the opportunity to earn the business!

LaShawn Norden, PA, ALHS, REALTOR, Buyer's Agent, RE/MAX Central Realty, Seminole County, (321) 377-0157, LaShawn@LaShawnNoden.com

 

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Direct: (321) 377-0157, LaShawn@YourHomeOurPriority.com Certified Distressed Property Expert (CDPE), Accredited Luxury Home Specialist (ALHS)  & THREE-YEAR Five Star "Best In Client Satisfaction" Award Winner! Click HERE to visit MY WEBSITE!  

Priority One Homes Team @ Keller Williams Heritage, Offices in Lake Mary, Longwood & Downtown Orlando, Florida

SEARCH MLS HERE for CENTRAL FLORIDA Resales, Foreclosures, Short Sales, New Homes, Condos, Townhomes & More.

Should you or someone you know be interested in buying or selling Real Estate in Central Florida, I'd love to earn the business! I am never too busy for referrals!

 

 

Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

LaShawn,

This is a very nice of things not to do when buying a home.

Dec 12, 2008 12:15 PM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

La Shawn:

Good idea, buyers get distracted from their objective sometimes and just carry on with out thought to the credit changes they may cause.

Great post.

Richard

 

Dec 12, 2008 01:07 PM
Lela Hankins
RE/MAX UNITED - San Marcos, CA
CDPE, CRS, e-PRO, GRI

Someone was telling me recently that when the lender called the day before closing to do a final verification of employment, the employer said, "Well, the employee doesn't work here much longer.  We are laying him off today, and have not yet told him."  What a shock -- to lose your dream home and your job all in the same day!  Better to learn it before you were in the mortgage though!

Dec 12, 2008 01:20 PM
Paddy (Patricia) Pizappi
Better Homes and Gardens Rand Realty - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

Hi La Shawn, I hate it when they do that.  I do warn my buyers with the same things you do but the ne that has created a problem or two is the appliances.  They think they need to have them the day of closing.  Most places can deliver in a day so I tell them to head for Lowes or Home Depot right after the closing to get the appliances delivered the next day.  Have a great weekend.

Dec 12, 2008 10:03 PM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Don~Thanks for being the first to comment~

Richard~Yes, Buyers often think that as soon as they have been approved and are already under contract that there is nothing that can go wrong...which of course, is incorrect!

Lela~What a horrible story! Thanks for sharing though as I think it puts "reality" to my post.

Paddy~I haven't had that happen with a Buyer...but did have one who called from the car dealership...I'd say it's smart to hold off on all purchases until the loan is closed!

Dec 12, 2008 11:22 PM
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I think we have all had those buyers that go out and buy a car because they thought it was a good deal or do something that we expressely told them not to do.  Its not always what they should do its what they shouldnt do that they need to be told. 

Dec 13, 2008 12:54 AM
Michael Smalley
Waterstone Mortgage - The Wellington Group - Winter Park, FL

LaShawn. this is exactly why I have a page in my application package that says Do's and Don't in bold RED letters.  Don't quit your job, buy anything new on credit, miss a payment on anything, etc.

Dec 13, 2008 01:30 AM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Morgan~You are so true...and it's our job to educate them! (along with their loan officer, of course).

Mike~Not only is your application package one of the most comprehensive that I've seen, but you and your staff do an excellent job communicating things like these to buyers and agents alike...which is one of the many reasons I love having you on my lending team!

Dec 13, 2008 07:57 AM
Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner
Chris Brown | Certified Mortgage Planners - Orlando, FL
Chris Brown 407.367.2974

great post lashawn... sometimes thing that are obvious to us are not obvious to folks that dont live and breathe this stuff.  this is something that i always make clear to folks beginning the process for just that same reason.

 

chris the implementer

Dec 13, 2008 05:22 PM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Chris~Thanks for stopping by and commenting...and yes, you are right, it's better to over-educate rather than under-educate as it's important for Buyers to know what can hurt them if they don't pay attention.

Dec 14, 2008 11:01 AM
Eric McGowan
Moody, AL

Lashawn great timing with this post and the holidays. People often forget that lending is not what it used to be. What one may think seems crazy can be asked for and is asked for now on a file by underwriters including updated credit, income, and paystubs.  

Dec 14, 2008 11:53 AM
LaShawn Norden
Keller Williams Heritage Realty - Longwood, FL
REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Eric~So true. The rules for getting money these days change more frequent than the wind does...Buyers need to keep their pennies in their pockets and refrain from shopping until AFTER closing to prevent any issues. Thanks for stopping by!

Dec 14, 2008 12:08 PM
Marcy Moyer
eXp Realty of California Silicon Valley Probate, Trust, and Investment Sales - Mountain View, CA
Probate, Trust, and Investment Specialist

Great post. I am always amazed at how things I take for granted are completely over the heads of my clients.

Marcy Moyer Intero Real Estate Menlo Park Ca

Dec 14, 2008 12:30 PM
Anonymous
Anonymous

LaShawn:

You might want to suggest to your clients to pull their FICO score a week or so before closing to make sure nothing adverse has happend since their pre-approval. A free credit report can be obtained from any of the 3 reporting agencies at www.annualcreditreport.com and for $8 they can "buy" their current FICO score.

Probably the best 8 bucks your clients will spend in the purchasing process.

Regards,

Doug  CFP

Dec 17, 2008 07:26 AM
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