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The Movie Almost Killed the Deal

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Real Estate Agent with Charlesgate. Realty Group 9049889/s

The Movie Almost Killed the Deal

 

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During my initial consults with home buyers I go over the process, give an overview of mortgages, talk about the local market conditions and answer questions.

I also mention credit and how you should not do any of the following during the home buying process:

  • Buy a Car
  • Open a new credit card
  • Buy all new furniture
  • Quit your job

I review this again when the buyers locate a home and are under agreement.The lender pulls your credit and verifies your employment right before closing.

Recently I was working with some very nice buyers on the purchase of their first home. About a week before closing my clients went on a trip. When they got their hotel bill there was a movie on their bill that they did not order. The hotel would not take the movie off the bill so they put in a dispute with the credit card company.

They were cleared to close and the lender pulled their credit as one of the final steps in the process. The dispute showed up causing a delay to the closing. Fortunately, this lender was able to give the buyers advice on how to remove the dispute in a timely manner. It’s not always easy to remove a dispute once it is on your credit. You can not get a mortgage with a dispute on your credit.

I will be sharing this story in my initial home buyer consult.

Do you have questions about the home buying process? Please contact me.

 

 

Posted by
Best Regards, Susan Doig Realtor Charlesgate Realty Group www.Susan.LiveCharlesgate.com Cell 617-504-4381 Sdoig@charlesgaterealty.com
Show All Comments Sort:
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I'm surprised that the dispute was already in a credit report just a week after it happened!  Anyway, good to know to add disputing charges to the list of things not to do before closing.

Jun 13, 2014 03:34 AM
Bruce Kunz
C21 Solid Gold Realty, Brick, NJ, 732-920-2100 - Howell, NJ
REALTOR®, Brick & Howell NJ Homes for Sale

Hi Susan. I wasn't aware a CC dispute like this could/ would cause a lender to stop a closing. Certainly not over such a small amount. Glad you were working with a good lender who knew what to do.
Thanks for sharing. I'm adding it to my list of "don't ds" as well.
Bruce

 

Jun 13, 2014 03:45 AM
Arlow Real Estate Group in Savannah, Pooler & Richmond Hill
Keller Williams - Richmond Hill, GA

Great post, another one to add to the checklist. Thanks. 

Jun 13, 2014 03:54 AM
Women of Westchester Working Together
Women of Westchester Working Together - West Harrison, NY
Women helping Women get ahead

OMG that is crazy over a tiny dispute. That never would have occurred to me. Good warning for future buyers.  - Debbie

Jun 13, 2014 04:09 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Once a buyer is pre-approved for a mortgage loan, is under contract, it's austerity until after closing. Buying a home used to be that way, it was only in the days of easy credit that nothing seemed to matter. My question is, unless the buyer is paying all cash, why are they taking a trip while simultaneously buying a home with a mortgage? I don't know of a lender who doesn't run credit, verify employment hours before giving clear to close. This is a warning to home buyers not to run up credit, buy a car, a boat, take out a new loan or suffer the consequences of not buying their new home. Great post,

Jun 13, 2014 04:37 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA

Lenn,

you are a wise woman. Qualify the buyer!

Tammie,

It doesnt seem like that big of a deal and it was removed pretty quickly.

Alexa,

its so important to work with a reputable lender. They can help when issues like this arise.

 

David,

It's so important to use a good lender!

Michael,

Thankfully, they did not put their trop on the credit card. 

 

Jun 13, 2014 04:38 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA
Mike, It's crazy but true! I believe they look unfavorably at a dispute no matter the amount. Janis, Buyers are under a microscope until closing. Janet, So much of what we know comes from a been there done that place. Tough but valuable lesson! TG, True. I try to cover an overview of what to expect but not sure anyone could have foreseen this one!
Jun 13, 2014 05:13 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA
Barry, I know we can't be everything to everyone but we are their point person. It helps to understand how crazy the mortgage process can be. Laura, I'm sorry you had to learn this lesson personally. It's kind of crazy if you think how quickly the dispute goes up and how hard to remove! Teral, It does seem like a no win situation. Tim, I just don't like surprises. The more I can stay ahead of things the better. Suzanne, Surprising but true!
Jun 13, 2014 05:19 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA
Jon, You definitely sound like you know what you are doing. I like your idea of calling it mortgage planning! Biggest purchase most people make. Preparation is key! Jimmy, It's not my first go around with a dispute. I have great lenders and a reputable credit repair company on speed dial! Laura, Thank you! Catherine, The exciting and whacky world of real estate!
Jun 13, 2014 05:26 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA
Tammy, Oh! I'm sorry to hear that but am glad you eventually closed. Suzanne, I learn new things all the time. I'm glad you liked the topic. Than, Active rain is great. I have learned so much! Kat, This dispute came off pretty quickly too. It doesn't always work out well. Bruce, I believe it's the dispute itself and not the amount they look at but know this particular loan needed great credit to satisfy the terms. Mark, Thank you! I'm glad you liked the post!
Jun 13, 2014 05:33 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA

Women of Westchester working together,

I love your name! How clever! Thanks for reading!

 

Pamela,

The trip was not the issue at least for this buyer. Buyers are under scrutiny for sure!

Jun 13, 2014 06:01 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Susan, It never ceases to amaze me what can happen to delay closing.

Jun 13, 2014 07:18 AM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA

Sybil,

it's not easy for buyers and especially hard on fthb's!

Jun 13, 2014 08:17 AM
John & Shannon Cox
CALL REALTY - Mesa, AZ
THE COX TEAM

Wow! Who would have thought that a $10 movie charge could delay a closing? Thank heavens the lender was on top of it and helped the buyers take care of it. I guess that's another possible scenario I need to tell my buyers about.

 

Jun 13, 2014 08:58 AM
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

It's a great idea to check for these disputes early so that they can be corrected Susan.

Jun 13, 2014 10:03 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

This is a first for me. And having stayed in many hotels over the decades as there was a time I travelled 50% of time on business, I'm astonished the hotel didn't accommodate their guests' request. More often than not, they do.

Jun 13, 2014 10:34 PM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA

John and Shannon,

Fortunately, there was a great lender on this transaction.

Tom,

Yes! I've had this happen one other time and the dispute was caught early and removed prior to closing. It's important for the lender to read the report not just the score.

 

Nina,

I would say this was a case of anything that could go wrong went wrong.

 

Jun 14, 2014 09:36 PM
Brian Olsen
Portland, Lake Oswego, West Linn & Dunthorpe Neighborhoods, Waterfront, Luxury & Floating Homes - Lake Oswego, OR
Cooper Jacobs Real Estate Group | Keller Williams

Good info. Susan and an important BLOG for folks to understand. Why can't we all get it right and not mess up our credit scores. There would be much less heartache. Thanks!

Jun 15, 2014 01:13 PM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

I have not had that happen to any of my buyers, but it makes sense....even if it was just over a movie!  Thank you for the information.  I will be able to ask my local lenders and add it to the buyer consultation.

Jun 15, 2014 01:26 PM
Susan Doig
Charlesgate. Realty Group - Winthrop, MA

Brian,

there are a lot of people out there trying to fix their credit. It was a rough few years for many.

im glad you found the info helpful! Thanks for reading!

Jun 15, 2014 09:47 PM