Put Your Credit Card Away!

By
Real Estate Agent with RE/MAX Andrew Realty Serfvices

Don't make any large purchases before closing on your new houseIt's no secret that banks are much stricter when qualifying you for a loan to buy a new house. In the past, it was very typical for buyers to spend the intervening weeks before their closing shopping for furniture and appliances. This way they could close on the new property and have their new living room set and washer and dryer delivered the next day.

On June 1st, Fannie Mae started a new rule called Loan Quality Initiative. One of the requirements of these rules is for your bank to pull a last minute credit report. They're looking to see if you've incurred any new debt since your mortgage application. Wait until after the closing to purchase your new bedroom set or the widescreen TV you've always wanted. Don't apply for a new credit card or even a store charge card either.

Don't derail your closing - put your credit card away until after you are the owner of your new house.

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Rainmaker
223,032
Scott Baker
www.eHomeReports.com Coldwell Banker West Shell - Liberty Township, OH
Realtor Homes for Sale Cincinnati/Dayton Ohio

That is great advise, now more than ever. I used to caution by buyers about buying a new car on a loan before closing. Now I tell them to go home everynight, shut the blinds, turn off the phone, watch NO TV. Wait until closing, afterward you can buy a can of beans if you want, not before.

Jun 12, 2010 04:24 AM #1
Rainmaker
4,394,814
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

When they pull credit 1-3 days prior to closing, we have to HOPE they have not changed their credit rating!     It is our job to keep them on track!

Jun 12, 2010 04:33 AM #2
Rainmaker
231,176
Richard Byron Smith, NMLS #184479
Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289 - Chattanooga, TN
Mortgage Loan Officer

So very important - nothing can change and lenders are checking everything before closing.

The Realtor and the LO should both remind and emphasize this.

Jun 19, 2010 05:15 AM #3
Rainmaker
165,790
Jill McTague
RE/MAX Andrew Realty Serfvices - Medford, MA
DebOnTheWeb & Associates - Medford, MA Real Estate

I thankfully haven't had an issue yet with a last minute credit report causing a problem with a buyer's financing - have any of you?

Jun 19, 2010 05:49 AM #4
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Rainmaker
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Jill McTague

DebOnTheWeb & Associates - Medford, MA Real Estate
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