Accepted Offer? - Not the time to be Spending Money

Great job the way you gently put this issue.  This can be a huge problem for buyers, not realizing when they make a purchase of something for the house, now they may not be able to purchase the house.  It is something that always needs to be addressed.  Great job!

Janis Borgueta So true! We have another home pending and what did the buyers do? They both went out and leased new cars!!! UGH! This after we told them to do nothing that adds to their debt load.

Janis, Just a percent change in debt figures may be the difference between approval and losing a loan.  Best to wait until the ink is dry on the closing before buying the new furniture sets, changing vehicles, etc.

It has not happened to me but has happen to other agents in my office. Usually first time buyers.

Janis - it makes me nervous when clients start talking about what they are going to buy.  I always remind them ... not now. I explain they need to wait until after they close.  Many simply do not understand.  It is always best to keep reminding them.

A discussion about buying anything that may increase debts or making large deposits that will requiure a "paper trail" should be made while taking the loan application and as often as you can throughout the home purchace process.  Good reminder.

You can't tell them / remind them often enough. Sometimes people just don't think. 

Oh yes,  yes, yes, yes, yes Janis Borgueta.  Underwriters are very sensitive about these things.  Even just MOVING monies between accounts .. or ADDING large amounts will draw their attention and raise questions.  

Best to always check with your lender prior to making any charges, expenditures, or moving money ... just to play it safe!

Gene

I lost a deal last year when a client showed up for an inspection with a new car, beaming.  When I told him it cost his family the house he didn't believe me but then within a couple of weeks saw it all crumble.

Janis this was a good post way back then... and it is still a very good post today.... Buyers need to be constantly reminded because we know:)), Have a Happy and Prosperous 2016, Endre

Janis, this is perfectly posted and I did like your personal example, as that's an easy way for people to understand. You can impart too much information when it comes to finances! 

Janis, you are right on target with this blog.  We actually have our borrowers sign a disclosure that we developed telling them about large deposits, big purchases, opening up new credit, and essentially telling the borrower to 'FREEZE THEIR CREDIT PICTURE".  We came up with it when one of our clients spent all of their closing funds on new furniture.  We were blown away!  Thank you for educating your clients.

Hi Janis, great blog. Most buyers aren't aware that the banks can do a credit check the day of or before closing. The worst part is that anything unusual could raise a red flag and cause them to pull a mortgage commitment. Your advice is spot on, wait until the keys are in hand before making any big purchases.