Buyer Tip: What You Don't Tell Me, CAN Hurt You!
Case in point: If you know that you are making payments on a "civil matter" that does not show up on your credit report, it might be a good idea to let the lender know. It WILL come up in the buyer lien search and could end your dreams of home ownership.
How does this happen? Let's say it was ten years ago and you leased an apartment with a friend. You left the lease prior to the end and thought nothing of it. Until you try to buy a home. There it is and with interest, it needs to be satisfied in order for the lender to feel comfortable closing the loan. These liens could be $200.00 or $2000.00. And if it is $2000.00, it may jeopardize your ability to buy.
This is what happened to a buyer last month. It could have been averted had the buyer mentionned it at the time of the loan application. There would have been more time to get it addressed. Instead, it was discovered the week prior to closing. Needless to say, the seller was quite distressed to learn that their current home was not going to close as expected. Especially when they were already packed and ready to move into their next home.
The first in a line of 5 transactions, all dependent on my buyer being able to perform. Luckily, there was a family member of the buyer that was able to pay off the lien. But in most cases, this would have been a dead transaction.
And so we learn that even if it isn't on your credit report, let the lender know anything that may adversely affect you in the process of buying a home. Lenders are always putting themselves in a position of risk and minimizing it is their ultimate goal.
If you have questions about what may be on your credit or in your history, you can look at public records or call a lender to have the check done on your behalf. Especially if you suspect that it could be lurking as an unresolved issue. I would love to help, please contact me for a free home buyer consultation!