Temptation at the Cash Register. Ho Ho Ho ... You Just Lost the Chance to Close Your Loan

Reblogger Lizette Fitzpatrick
Real Estate Broker/Owner with Lizette Realty - Richmond KY 205403

It's amazing that one small item like opening a store credit card to save a few bucks could keep a buyer from closing on their home.

If you have a closing coming up please keep this story in the back of your mind. Don't try to save a few bucks...you may lose that dream home deal.

     Gene Mundt Chicago Bancorp Holiday Smart Shopping Post

    

    

     You're out doing your holiday shopping. It's 11:45 pm .. and you're in that store because they have exactly what you want and have been looking for ... at an unbelievable price, but only if purchased during the hours of 10 pm to midnight.

    

    

      Plus, in your hand you have an additional coupon that you found at an online site. The coupon will give you a whopping and additional 10% off your purchase!

    It's your turn up at the register and you're feeling like a California goldminer about to hit the motherlode. The clerk behind the register now utters words that will cause a meltdown in any frugal shopper's heart ...

     "Would you like to open up a "fill in the blank" credit card to save an additional 10% on your purchase today"?

     You can feel your heart racing. You almost feel faint. But somewhere in the back of your mind is this faint voice whispering to you. It's your damn pesky butt-inski mortgage banker's voice. And he's/she's telling you ... "Don't take out any new credit or run any more credit reports without checking with me first. It could sink your loan's approval. Hinder or stop your loan from closing".

     Oh man ... what to do? What to do? An additional 10%!

    Gene Mundt Chicago Bancorp Credit Past Due Ornament Pic

     Let's do some simple math. Let's say what you're going to buy is a fairly high ticket item like a television. It's a big one and typically well over a $1000 dollars. It's on sale for $768.00, with another $100.00 off if you purchase it during the special late-night hours.

     You've got that covered and have whittled the cost to $668.00. Your internet discount coupon takes another 10% off the price, leaving a cost of $601.20. Tack the additional credit card offer ... another 10% off ... and you're now buying the TV for $541.08! $541.08!!!

    

     You can feel the sweat pouring down your back. But you hear that obnoxious little voice again ... whispering "Don't do it"! Do Not Do It!! Seems you might need some common sense smack talk right about now.

     Do you really want to risk your beautiful home's closing ... lose the perfect home at the unbelievable price you negotiated? Do you want to throw away all the hard work and saving you have done for your home?

     Is forfeiting the unbelievable amount of paperwork and documentation you had to fork over during processing what you had in mind?

     You might be doing exactly that ... and all for a 10% off offer that equals $60.12. Is it really worth it to you?

     I am being perfectly honest when I say, "it has happened". Because clients didn't weigh they're options carefully, plan their expenditures, deny themselves, didn't believe or follow their mortgage banker's advice, or just temporarily lost sight of their goals ... the ability to close on the house they wanted and loved so much was lost. LOST!

     So think very carefully this holiday shopping season about your credit and financial decisions should you be in the process of closing on a home ... or thinking of buying a home in the near future. That small store credit card and small $60.12 in savings could mean a huge loss to you or your abilities to buy a home.

     Don't let this holiday season's temptations bite you. Remember your ultimate goal. Don't save yourself OUT of your new home ...

 

     * Work with a mortgage banker that offers you solid, sound advice based on over 35 years of successful mortgage banking experience and expertise. Contact me if you need mortgage lending advice and service. Cell: 708.921.6331. Email: gene@chicagobancorp.com. Or through my website: http://www.genemundt.com.

                            

www.genemundt.com

gene@chicagobancorp.com

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Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

oh yes....this is a very dangerous time of year to be buying a home for just this reason. Christmas shopping can run up a credit card bill, or deplete savings....we need to be so careful to explain this to buyers on the edge.

Nov 29, 2010 06:54 AM #1
Rainer
63,267
Karen Seeman
Exit on the Hudson Realty - Tenafly, NJ
CDPE, (201) 247-0556, bergencountyhomes4sale.c

Great story & just in time for the holidays.  Is your voice the voice of the mortgage banker?   Hmmm, I wonder?

Nov 29, 2010 06:57 AM #2
Rainmaker
170,213
Faye Y. Taylor
StepStone Realty, LLC - Floresville, TX
Homes for Sale Floresville, La Vernia & San Antoni

Even when advised the buyers sometimes don't realize that don't buy means don't buy anything!

Nov 29, 2010 08:00 AM #3
Rainmaker
598,830
Mitchell J Hall
Compass - Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Very important reminder this time of year. I once heard a story that people bought new furniture on a credit card for their new house and they couldn't close because of a lower credit score.

Nov 29, 2010 11:25 AM #4
Rainmaker
207,865
Erby Crofutt
B4 U Close Home Inspections&Radon Testing (www.b4uclose.com) - Lexington, KY
The Central Kentucky Home Inspector, Lexington KY

I didn't just "hear a story".  I heard it from one of my customers when I followed up with them a month after the inspection.  "We didn't get the house.  We bought a washer and dryer just a few days before the closing and it screwed our credit score, so the bank would let us have the loan."

I KNOW their realtor told them not to buy anything until after closing.  They didn't listen.  Their loss.

Nov 29, 2010 11:44 AM #5
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Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes

When I saw this post I realized how easy it is for a new excited buyer to slip up and buy on their credit cards. I try to cover all the bases when first meeting my buyers, but this one may be so simple that I forget to share it.

Nov 30, 2010 03:09 AM #6
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Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Lizette, it's easy to get carried away with purchases especially before the holidays which is bad enough but opening another credit account in the middle of waiting for loan approval is not a good thing at all. 

Dec 01, 2010 03:40 AM #7
Rainer
36,172
Shanna Perino
A Sense of Order - Organizing for the Home and Office - Nashville, TN
Certified Professional Organizer/Licensed Realtor

Wow, I had NO IDEA this could happen.  I will not forget about this!  Thanks for reblogging this Lizette.

Dec 01, 2010 04:52 AM #8
Rainmaker
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Kara Casamassina
International Property Management Group, LLC - Aiken, SC
Boomers and beyond

great info Lizette!  its so easy to be tempted :)

Dec 01, 2010 09:22 AM #9
Rainmaker
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Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Lizette,

I am very pleased that I am at a point in my life where I don't have to worry about things like that. It was an issue in younger days.

Dec 03, 2010 06:34 AM #10
Rainmaker
1,334,448
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Lizette - This is an excellence re-blog!  So many buyers don't even realize opening a credit card can put everything out of whack.

Dec 14, 2010 08:02 AM #11
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Lizette Fitzpatrick

Lizette Realty, Lexington KY MLS - Kentucky Homes
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