Warning for Buyers

Now that the photo has your attention lets get serious.

As you begin to look for your new home, you may be tempted to get a head start on furnishing it.  DON'T DO IT!!!!!

Making a large credit purchase before closing on your loan could be disastrous.  Purchases made on credit, even with "no payments or interest for one year" will affect your credit score and debt to income ratio (this determines how much your lender feels you can afford).  It is even possible to drop your score and ratios enough to be denied your loan.

Additionally, most lenders are required to track or review your credit behavior after you have been approved for a mortgage but have not gone to closing.  If new credit inquiries appear on your credit report prior to settlement, lenders are required to check them out to determine if any new debt might require sending your loan through underwriting again.  This is not good.

Also, even after you close it is a good idea to get use to the new expenses that go along with home ownership before making any major purchases.  It may take you several months to truly know what your average utility bills will be etc., there could even be some expenses that don't need to be paid every month that you have forgotten about.

So forget about buying that boat in the picture and take you time learning your new budget.  Remember before taking that leap talk with your loan officer or your real estate agent.

I am a REALTOR® and Associate Broker with Roy Wheeler Realty Company  Licensed to sell real estate in Virginia.

If I may be of assistance helping you purchase a home or to place your current home on the market please do not hesitate contacting me.  My number is 540-290-3200 or email at shockley.dave@gmail.com. 

Covering Charlottesville, Crozet, Staunton, Waynesboro, Stuarts Draft, Fishersville and Albemarle & Augusta Counties.

Oh, by the way... I’m never too busy for your referrals!