What Not to Do After the Offer Is Accepted (Mr. & Mrs. Buyer). Some of this advice I give my buyers, stems from lessons learned from past mistakes.
For example, if your deposit, down payment or entire purchase is coming from a stock portfolio-you are not ready to buy until you are ready to cash out and place your funds in a checking or savings account. I had a client in early 2001 who refused to do when purchasing a $600K home. His down payment was 60K from his stock portfolio and 48 hours after he got an accepted offer; the market took one of its historic 2001 dips into the "Dot.Bomb".
Poof, gone was his deposit and ability to buy and gone was all my hard work and time!
More tips from the "NO" List:
- Do not keep financial secrets from your Realtor & Mortgage Professional. They have a fiduciary duty to you, providing you secure privacy. Secrets kill deals, because underwriting will find them i.e.. alimony, child support, etc. No secrets: now is the time for full disclosure, ask for their help and be prepared to put some work in. In some cases, you'll need to talk to your CPA or attorney upon their advice. Disclose all debits: outstanding loans & credit cards, etc.
- Do not make major charges on your credit cards! Don't open new ones or close established ones-this throws off your debit to income ratios and or affects your credit score. I had a client once, while in escrow, prior to funding, buy all their new furniture for the house they were buying. It was almost a disaster; they offset their debit to income ratios and almost lost their loan. The ended up needing to bring more down payment to the deal to avoid a higher interest rate and or losing the loan. Do not make major purchases requiring lines of credit like a new car or furniture & appliances.
- Do not change jobs/industries or quit/lose your job during your process or escrow. Sounds obvious, but I have seen clients decide to switch careers while buying a home and it kills their credit. However, if you stay in the same industry (lateral moves), it's less of an issue.
- Do not change your bank accounts, especially the ones where the earnest money and cash due at close are coming from. This may seem obvious, but I've had it happen!
- It's often advised not to go on vacation or leave town during escrow, but since many of my relocation clients work their deals from out of town, out of state and even the out of country, I am flexible. If I can reach you by phone, fax & e-mail, it's OK. You also need to be somewhere where Notary service is available or assign a power of attorney. But you also have to be willing to fore-go some of the usual in person duties like inspections, final walk-through of property and signing paperwork locally.
- Do not disappear or become hard to reach. Sounds silly, but some clients, due to work, travel or stress have done so. Your Realtor & Mortgage Professional need to be able to reach you. Plan to be signing many documents, providing info and paperwork and disrupting your normal routine for a few weeks (or months) during the process of finding a home and going through escrow.