Re-creating the 10 Commandments of Purchasing a Home & the Do's and Dont's for the Lending Process.
So you decided on a home to buy and you made the offer. Congrats! But you aren't there yet. You even went through tedious negotiations, inspections and loan pre-approval. Great, but you aren't there yet! So when can you sit back and confidentially sigh a sigh of relief that you did it, you bought a home? Not until you have closed, funded, moved in a even a few days after for the sake of lenders quality control.
Lending as we all know has tightened up. Big Brother is scrutinizing every document, every aspect and well .. almost every breath you take. To be safe you may want to add to your list of 10 commandments the following:
Nothing surprises me in this business.. so when I got an email from a client on a Monday morning who closed on their home the prior Friday afternoon, asking if anything can still go wrong with the mortgage loan... my hair still stood up on my arms. What could possibly go wrong I thought? But concerned I replied... why? She continued to tell me she received a call from the bank asking if she did indeed buy a car.. and that the loan has not yet funded. She told me she wanted to pick up a new car that afternoon.
STEP BACK...WHAT IS GOING ON? THEY ARE MOVED IN ALREADY.... Commissions were already distributed, permission for the release of keys ect... It was done.
Turns out the home-buyer had made credit application to an auto dealership that weekend (to my knowledge).. lender did a Quality Control and found the credit inquiry. I immediately advised her to speak to her mortgage broker for advise.
Whew.. we made it through that one. But a real reminder that this among other Do's and Don't need to be discussed and should be in writing and acknowledged by all parties every time! Assumptions can only find you in a pickle you really don't want to be in. Imagine if this loan was cancelled. The seller would have to evict what is now a squatter... Interest in the Real Property, if filed, could have put a lien on the property and perhaps other unforeseen surprises.
Consumers/Buyers/Borrowers... discuss every financial move you make with your lender and agent. You may thi
nk something is not a big deal but it could be a Very Big Deal. Don't forget you purchase and Ernest Money may be at stake here.
Realtors... discuss ramifications of a purchaser’s actions to them. A home-buyer does not know what we do. A client depends on your knowledge and professionalism to make it to the end comfortably.
For more "10-commandments" stay tuned. Happy Home Buying and Smooth Borrowing to all!
Gayle Beyer - Broker
Welcome Center Realty
257 SW Port St Lucie Blvd
Port St Lucie, FL 34984
www.fla777.com
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