How a weekend in Vegas might cost you your house....

By
Real Estate Agent with RE/MAX Access

 

How a weekend in Vegas might cost you your house...

 

This is cautionary tale for all prospective homebuyers out http://www.flickr.com/photos/68751915@N05/6869769579/sizes/q/in/photostream/there.  If you are in the market for a home you have likely already spoken with a lender to get pre-qualified (always the first step).  During that initial conversation he/she likely lectured you about the importance of not doing anything that might lower your credit score or damage your debt to income ratio. 

 

http://www.flickr.com/photos/68751915@N05/6280507539/sizes/q/in/photostream/He/she probably told you not to buy a car, furniture, jewelry, heck buying ANYTHING on credit.  Another thing your lender probably told you to avoid if possible is quitting your job, changing jobs, getting fired or getting demoted.   Finally he/she certainly also advised you to keep any credit cards or lines of credit OPEN, perhaps pay them down but DO NOT CLOSE THEM. 

So this leads me to my point…

 

Several months ago I client of mine who was qualified and under contract to purchase a beautiful home with a pool http://www.flickr.com/photos/manea/2995160710/sizes/q/in/photostream/went on a mini vacation.  He and some of his buddies traveled to Vegas for the weekend.  Sunday morning he realized he had misplaced his credit card.  Being the responsible young man he is he immediately contacted the credit card company and cancelled the card.  Luckily no activity had been recorded and they immediately issued a new card with exactly the same limit.  No problemo, right?

 

http://www.flickr.com/photos/glass_window/1551084643/sizes/q/in/photostream/Wrong.  A few days later we found out that this little exchange had dropped his credit.  Why did his score drop, you are probably asking? Because when he called to close the account and open the new one he was issued a brand new account number and, according to the credit bureaus this is a bad thing. 

 

http://www.flickr.com/photos/familymwr/4815264979/sizes/q/in/photostream/

 

Luckily for my client we still had enough time to work everything out and he was still able to purchase the home but not without a bunch of blood, sweat and tears by the client and the lender. 

 

 

http://www.flickr.com/photos/lancefisher/5338444266/sizes/q/in/photostream/This was a new one for the lender and myself and there’s really not a whole lot he could have done differently in that situation other than not lose his card.  So the moral of the story is, when you are in the process of buying a home follow the direction of your lender, your agent and by all means…

DON’T LOSE YOUR CREDIT CARDS!!  

 

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Topic:
Lending / Financial
Location:
Texas Bexar County
Groups:
RE/MAX Active Rain Bloggers
"Whacked"!!!
Diary of a Realtor
Bananatude
Bartender, Make it a Double
Tags:
sa
buying a house in san antonio
getting a mortgage in texas
how to mess up your mortgage in texas
qualifying to buy a house in schertz

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Ambassador
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Jeanna, Sometimes there's just not a ton of common sense in the process is there?

Aug 27, 2012 02:20 AM #1
Rainmaker
188,991
Jeanna Martinez
RE/MAX Access - Schertz, TX

Yes there sure is BLiz!! =)

Aug 27, 2012 02:30 AM #2
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

More idiocy from the Credit Bureaus. I guess, if they made it simple and logical, no one would need to pay them to interpret the scores or clean them up or any of the number of sides businesses they have.

Aug 27, 2012 03:28 AM #3
Rainmaker
188,991
Jeanna Martinez
RE/MAX Access - Schertz, TX

Than - They sure do some really wacky things with scores....definitely not simple or understandable all the time ;)

Aug 27, 2012 03:45 AM #4
Rainmaker
191,626
Sheila Moran
RE/MAX Access (Garden Ridge, San Antonio, New Braunfels) - New Braunfels, TX
SanAntonioSheila.com, RE/MAX Access, 210-32

Jeanna,

Oh my. 
Good information for Buyers !   Who knew?

Aug 27, 2012 04:10 AM #5
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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Wow...well, I was expecting a different story about Vegas for sure lol :)!  Closing and Opening Credit is also going to affect your score, but this was a total fluke lol :)!  I am glad that this worked out for the buyer...

probably best to go to Vegas AFTER the close on the house anyway...too many temptations lol :)!!

Aug 27, 2012 04:39 AM #6
Rainmaker
188,991
Jeanna Martinez
RE/MAX Access - Schertz, TX

Sheila - it was a new one on me for sure!

Brenda - ha!! very true....hold off on the evils of Vegas at least until the ink dries and you have keys in hand! ;)

Aug 27, 2012 04:44 AM #7
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I wonder if he could have just made the account inactive and done the new account number thing AFTER closing.  

Aug 27, 2012 11:16 AM #8
Rainmaker
188,991
Jeanna Martinez
RE/MAX Access - Schertz, TX

Thats not a bad idea Chris...hopefully I'll never run into this again but if I do, I'll have to suggest they try that first! :)

Aug 28, 2012 04:25 AM #9
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Jeanna Martinez

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