That New Car Cost You A New House

Doug,

These stories are all too plentiful.  What's a few weeks of working with clients for nothing?  Or, maybe I can still sell them something in a few years.  These are things I tell myself, as I'm licking my wounds, when it happens to me!

So sad when people do this.  I haven't had it happen yet and am always quick to tel them not to buy anything, not even furniture.  And there goes your commission.  Ouch!

It constantly amazes me that future buyers don't consult with a Realtor first before they begin house hunting seriously so they can avoid the obstacles that would prevent them from getting a home.

I was doing an open house with a lot of activity and many visitors, yet many were not working with a Realtor nor were informed about the process to purchase a home. No approved loan, no idea about DTI, just uninformed or misinformed consumers. Wow!

Yep ... this happened to me too. It delayed escrow for two weeks and almost blew up the sale. That car salesman needs to have a talking to.

Hi Doug, unfortunately there are almost as many ways to screw up your credit as there are buyers!

Been there, had the 'Bimmer' payment even thought I thought it was BEAMER.

Too bad! I bet most of us counsel our buyers to not do any buying during the purchase or pre-purchase period, and I suspect many mortgage officers do as well, but it seems some buyers just don't believe it. I have had buyers get their credit checked AGAIN the day before closing. Thankfully they were good but I know someone who was not so lucky. Nope, no closing.

Carla is right - not a beemer, a bummer!!

Another example of why most overpaid people die broke, thier largest investment will be worth nothing in afew short years.

At the same time, most future millionaires that I know drive beat up old vehicles to manage thier real estate investments.

Hi Doug, the next best story is we bought everything on lay away till 2013, all we pay is the interest.

What a sad story.  At least the car salesman had a payday.  I always remind people not to buy ANYTHING while looking for a home.  Just keep paying the bills early, and do not bounce any checks.

I am dealing with that exact same scenario right now with a client... No fun.

I hope the car salesman gets run over by a truck.  That is crap and some of those guys will do anything.

Excellent advice! Even if the payment didn't show on credit the inquiry would show.

Then he would have to write a statement what the inquiry was for and if credit was granted.

On a side note ;-)  "Beamers" are BMW motorcycles...  "Bimmers" are BMW cars.  That is your useless fact for the day ;-)

This just keeps happening over and over no matter how many times you warn buyers.  As mine get close to mortgage commitment I hound them every week with reminders that if they purchase so much as a new set of pots and pans I will clobber them with them.  LOL

Yep, the biggest no no when buying a house is to zip that wallet until the loan is done.  That's too bad.  Maybe they can move into the Beemer.

Well said Doug. I just had this discussion with a prospective Buyer myself. Thankfully they did not make the same mistake as your clients. In the future I will mention this to my clients in my inital client meeting.

I tell my clients not to buy anything until the house closes. So far so good.