How Holiday Shopping can Ruin your next Home Purchase

Reblogger Praful Thakkar
Real Estate Agent with LAER Realty Partners

Black Friday is over. So is Cyber Monday.

Holiday Shopping Season is still on!

Did you tell your buyers not to go wild on these days?

Nicole Doty - Gilbert Real Estate Expert warns, in this re-post

How Holiday Shopping Can Ruin

Your Next Home Purchase

There are so many great reasons why the Holiday season is one of the most celebrated times of the year. Festivities, decorations, family, and food are just some of the best parts to be enjoyed along with friends and family. Whether you're an individual who prefers to sit at home and shop for gifts from behind your computer screen or you look forward to venturing out in to the bustling shopping centers full of kids waiting in line to get their picture taken with Santa Claus. Either way, there's no denying that this is also a marvelous moment for gift giving.

As the retail shops start to see an increase in patrons and profits the real estate market tends to experience the opposite. Between homeowners that are hustling to adorn their houses with lights and ornaments, and others who are busy preparing for parties and guests, purchasing or selling real estate is one of the last activities on the minds of those reveling in the holidays. 

However, even though the real estate market tends to see a slow down in activity during the winter doesn't mean there aren't individuals that are in need of buying or selling a home. What if you had a sudden job transfer or perhaps you made the decision to move closer to an aging relative who requires the assistance of a loved one. Maybe you wish to sell your home and move your kids in to a better school district before the new Spring semester begins. There are a multitude of reasons why you could find yourself shopping for a new place to hang your hat right in the middle of arguably the busiest time of year for most families. 

If you are one of those who individuals who's shopping list includes a new hat for Uncle Joe, a bicycle for your nephew, and a 4 bedroom single-story house with a 2-car garage and a bonus room for yourself, then you need to be aware that your holiday spending spree could have dire consequences and destroy the chances of getting qualified for a new mortgage.  Whether you've just begun your search or you're already under contract to purchase a property, here are three decisions to avoid that can ruin your ability to close on a home:

 

Applying for New Credit

I know it's tempting to accept the offer you received in the mail for 0% interest and no payments for six-months from that National credit card company. Especially when the wish lists of your family members seem to have doubled in size this year. But applying for any new credit while searching for a home can wipe out your lenders ability to gain a mortgage approval. This includes, but is not limited to, major credit cards, lines of credit, or department store charge cards. Taking on a new line of credit can severely change your debt-to-income ratio and alter other financial factors that play a roll in the loan approval process. Avoid any situation that will require an inquiry in to your credit score. 

 

Making High Dollar Purchases

What if you open the holiday edition of the weekly sales flyer from your favorite furniture store and the couch and love-seat combination that you've been anxiously watching finally went on sale and the savings is phenomenal! You couldn't imagine a better way to celebrate the holidays and your new home by relaxing around a fireplace enveloped in the comfort of your new furniture. To top it off, the flat-screen television that is sure to dazzle the neighbors when they come over for your next gathering is also being discounted to make room for the new years models to arrive. Clearly your lender will understand that these once in a lifetime savings would be foolish to pass up!

I can assure you, a lending institution will seriously scrutinize any purchase that is outside the normal spending habits of your household. Some banks will also require the borrower to keep a certain amount of money on hand throughout the entire lending process. If you spend any of that reserve which is supposed to remain in your account then don't be surprised if the door closes on your chances of being approved for your loan. 

 

Depositing or Transferring Large Amounts of Money

When applying for a mortgage, it's easy to send up red flags with a lender. Any and all aspects of your past and present financial footing will be under a microscope. It's not uncommon for couples or families to have multiple bank accounts in which purchases and deposits are made. Between savings accounts, checking accounts, and business accounts there are many valid reasons why an individual would need to transfer money or make deposits in to each and every bank account in which they have access. Cash gifts and company bonuses can be commonplace at years end. 

However, abnormal money transfers or unusually large deposits could send your lending institution in to a frenzy. There are many jobs or small businesses that make large deposits or money transfers each day. As long as you stay within the parameters of normal operating procedures for your company or personal accounts then you shouldn't worry. 

 

If you find yourself in one of these situations and are unsure of how to proceed then talk to your mortgage broker before taking any action. It's always best to play it safe with your credit scores and bank accounts during the entire loan application process. Even the most well intended financial decisions can wreak havoc on a successful loan approval. If you find yourself in need of applying for a new mortgage during the holidays then don't let an unfortunate misstep compromise your chances of moving in to your new home. 

 

If you or someone you know are in need of buying or selling real estate in the Gilbert, Arizona or East Valley areas then contact us today at ZionRealtyAZ.com. Not only will we help you find your next home but we can also recommend outstanding lenders who will assist you in gaining your next mortgage approval. 

For information on Real Estate in Gilbert Arizona contact us through our website at zionrealtyaz.com or follow us on Twitter @zionrealty and Facebook at Facebook.com/zionreaty

 

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Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, Jeff Dowler .

This is a post that needs more attention, especially at this time of the year.

Dec 03, 2016 10:07 PM #3
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, Patricia Kennedy.

I always have this conversation with the buyers at our first meeting.

Dec 03, 2016 10:08 PM #4
Rainmaker
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June Piper-Brandon
Remax New Beginnings ---------- and ------------- Ashland Auction Group - Baltimore, MD
Piecing Dreams One Home at a Time

Thanks for sharing this great post with us, I missed it the first time around. 

Dec 03, 2016 10:35 PM #5
Rainmaker
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Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I always, always, always caution my clients not to go on any shopping with credit spress, do not apply for any car loans, furniture loans nor new credit cards in the months before a home purchase.

Dec 04, 2016 01:47 AM #6
Rainmaker
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Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Good morning, Praful Thakkar great choice for a reblog.... it's that time of the year.... potential buyers are out spending their money on presents and cars and whatever.... and that's the end of their hopes of buying a home, at that time.

Dec 04, 2016 03:16 AM #7
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I surely did let them know - 'tis the season, right?!  Great post to re-blog, Praful Thakkar!

Dec 04, 2016 09:21 PM #8
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments.

Dec 05, 2016 07:47 AM #9
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, June.

Dec 05, 2016 07:54 AM #10
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I love to re-blog such good posts - helps members to catch up with....

Dec 05, 2016 07:54 AM #11
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, Thomas.

Dec 05, 2016 07:55 AM #12
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I also use '10 commandments' from Gene - it helps to educate buyers isn't it?

Dec 05, 2016 07:55 AM #13
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

(And I remember the incident when my buyer almost bought a car....oops!)

Dec 05, 2016 07:56 AM #14
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, Barbara.

Dec 05, 2016 07:56 AM #15
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Yes, it is that time of the year when we see this happening a lot, Barbara.

Dec 05, 2016 07:56 AM #16
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Seriously  enough, they are excited about their new homes and decorating their new home! So this is likely to happen.

Dec 05, 2016 07:57 AM #17
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by at this post and your comments, Debe.

Dec 05, 2016 07:57 AM #18
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

It is the season - and it is also the excitement of the new home, Debe.

Dec 05, 2016 07:57 AM #19
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Once again, thanks all for stopping by at this post and your comments.

Dec 05, 2016 07:57 AM #20
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Yes these shopping indulgences can be dangerous for both buyers and renters as well.  Those bills will catch up with them very soon.

Dec 06, 2016 11:30 PM #21
Rainer
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Karen Hellier
Freelance Writer - Big Canoe, GA
Freelance Writer for Professionals, North Georgia

Thanks for reblogging this blog post Praful. These are some good points I had never thought of before.

Dec 07, 2016 07:21 PM #22
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