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Secure The Loan Close On Your Home: 7 Tips To Make It To Closing

By
Real Estate Agent with Platinum Real Estate Group

I am reading a great book about real estate called SHIFT by, Gary Keller. The book talks about being a real estate agent when the market shifts downwards. It talks about some great tips that are needed to make sure your transaction goes over as smooth as possible. When reading the book it reminded me of how hard getting to the closing table is today, and how getting full approval for underwriters can be a daunting task.

Important steps to remember when in the loan approval process.

 

1. Don't, if possible, change your employment status. (If you lose your job, don't buy a brand new home, it's ok, just don't over extend yourself, and be responsible.)

2. Don't buy a new boat, car, furniture, or anything that needs financing. (Wait until you are living in your new home, before you extend on your credit purchases.)

3. Don't go to Tiffany's and charge that new diamond necklace, in other words, keep the credit cards in the "do not touch drawer."

4. Don't change your bank accounts, or deposit all of your hard earned drug money.(Be honest about your financing, and keep your current accounts active.)

5. Don't apply for a bunch of new credit cards to buy that new furniture, or co-sign on anybodies applications. Take those credit applications, create a bon fire in the backyard, and roast some marshmallows for the kids. 

6. That money you set aside to use for closing, DON'T SPEND IT, EVER! (The money you have been saving for your down payment, closing costs, and your new home, don't spend it, or consider your new home, your home that you almost bought.)

7. Mortgage qualification standards change daily, if not hourly, when your agent/broker ask you for information, supply it quickly and correctly. (The often over looked, but little step of submitting paperwork  in a timely manner, can be the difference in closing on time, or losing your earnest money.)

 

I know these steps and take them to heart, but I didn't really think about how important they were until we hit this market. Reading the book, SHIFT, restored in me the importance of these small steps, in the process of closing on your home. Be responsible with your finances, and soon enough you wil get that call, the one when your agent says: "Your home has funded and recorded, you may move in anytime you would like!"

Comments (7)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Good Article.  Will keep and provide my buyers a copy.  Amazing what buyers will still do even though  you said DON'T MAKE MAJOR PURCHASES FOR THE NEXT 30 DAYS.

Your Queen Creek Arizona Real Estate Specialist

May 19, 2009 09:51 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Can I buy the diamond necklace with the drug money?  Now you have me craving roasted marshmallows!

May 19, 2009 09:58 AM
Lisa Udy
Platinum Real Estate Group - Logan, UT
Logan Utah Realtor

HAHA! Sharon you crack me up! :) If you want the necklace go right ahead! I guess your going to have to roast some mallows aren't ya? :)

 

May 19, 2009 10:04 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Lisa--Maybe we should make each buyer sign document saying they have read and agree to abide by your suggestions.  Campfires ???  Read Kate's blog.

May 19, 2009 10:39 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

We heard a story recently about a couple who bough a house and THEN got married and took an expensive honeymoon all while waiting for the home to close -- and you guess it -- the home did not close.

May 19, 2009 02:46 PM
Roger Johnson
Hickory, NC

Great tips on making sure that you get that loan approved!

May 24, 2009 02:28 PM
Andrew Haslett
Van Warren Home Inspections, NAHI CRI - Fort Knox, KY
Heartland of Kentuckynulls, Best Home Inspector

Lisa, it amazes me that people do these things. They seem like obvious no-no's to me, and did when I bought my first house.

One thing that I don't understand, is why lending standards and parameters change as they do. I don't change the price of my services every minute during the inspection. Boy, that would be great.

It is as though lenders can, and do, use a bait-and-switch technique that is generally accepted throughout the real estate industry.

Unfortunately, I'm not ready to tilt at THAT windmill.

aka Don Quijote, Man of La Mancha!

May 24, 2009 02:39 PM