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!"
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