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CLOSING IS A PROCESS, IT'S NOT AN EVENT. WHO CHANGED THE RULES?

By
Real Estate Agent with The Mustafa Group

I can't tell you the number of loans that have been red flagged in the 11th hour, 24 hours before close. Lender says, everything will be alright, the underwriter is just pulling the credit one more time before they issue loan commitment - it's alright....I'll call you tomorrow with the good news! Next day the news isnt' so good and the damage control police have to be called in to try to save the deal.

What part of 'Don't apply for credit cards, Don't charge credit cards, Don't make any sudden moves with credit, no major credit purchases - just lay low' UNTIL WE GET THE LOAN CLOSED - ISN'T IN PLAIN ENOUGH ENGLISH? How many times should we say it? How many times does a buyer have to hear it?

11TH HOUR, 4 transactions,

1. Buyer buys a Pedigree DOG for $1,000.00 and puts it on their credit card [they will have to now get gift funds to pay it off to proceed]

2. Buyer uses a credit line to take out some money for moving expenses and to cover the cash they used for earnest money 1 week before close [Pay it off before proceeding]

3. Buyer goes and co-signs for her husband new car, 1 week before close and he dies two days before closing. [take the car back to the dealer and ask for loan foregiveness]

4. Buyer gets a credit card to buy new furniture but was going to wait until after the close to buy it, so no one would know. [omg, what do I do now]

NO NO NO NO - All four are part of the 'DON'T MAKE ANY SUDDEN MOVES WITH CREDIT, NO MOVEMENT UNTIL WE GET THIS PURCHASE CLOSED!

Is there another language that I can use besides throwing my hands over my forehead and slowly shaking it back and forth, I do this since I've never laid a hand on a client but hey, times are changing.

 

 

Posted by

Cindy Mustafa, REALTOR, ABR, CDPE, E-Pro

Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Those are some real doosies.  I also believe that a persons credit should be frozen after purchasing a home purchase, until they've established the ability to make their payments. 

Oct 30, 2009 04:23 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Cindy - I'm feeling your pain.  I too make it VERY clear to my clients the do's and don't (mainly the don'ts) during the loan transaction.  While most of them are very good at complying, every now and then, I get the idiot (yes, I actually said that about my clients) who simply has no common sense.  Go figure!

Oct 30, 2009 04:40 AM
Ashley Sharum
972.978.3109 - Dallas, TX
Ebby Halliday Realtors

Omigoodness, I feel your pain as well, but number three is heartbreaking. Best of luck with the closings and hoping for better luck with your next buyers.

Maybe print the statement in 72 point font on a single page and have them sign at the bottom?

Free magnet to hang it on their refrigerator until closing? I know it's hard...

Oct 30, 2009 05:30 AM
Cindy Mustafa
The Mustafa Group - Aurora, OH
Aurora REALTOR

In each instance, the transactions were completed and I represented sellers, not buyers but as a sellers agent, I was involved with the buyers bank to the point where I could make suggestions as to what could be done creatively, to get the transaction closed. All Closed!

Oct 30, 2009 05:36 AM