No New Credit!! We Really Mean It!

By
Real Estate Agent with Source 1 Real Estate 0571065

When you go in and meet with your loan officer, he or she usually tells you not to take on any new credit while you are waiting to buy your new house.  Most people understand that new credit can make you ineligible for your new loan.

So, when your loan officer and your real estate agent say "Don't apply for any new credit, don't use your credit cards anymore & keep everything the same until you close."  We really mean it!!

When that urge is there to get some new furniture or that invitation comes in the mail to open a new credit card:  STOP!  DON'T DO IT!Unfortunately, I had a client who either didn't believe us or decided that the statement didn't pertain to him and he lost his ability to qualify for his loan less than a week before closing.  Knowing it can be tough to resist, just remember that it will only be a matter of 30 - 60 days before you are in your new house. Believe me, it is much better to wait until you have closed than it is to lose all of the money that you put towards that purchase.  You could potentially lose so much!  Your earnest money, your inspection money, your appraisal fee, your option fee (if you are in Texas) and possibly more.

Just say NO!!

Remember, if you loan officer tells you that your loan approval is contingent on no new credit and your ratios cannot go any higher, believe him or her.  If you really want that new home, listen and wait.  You will be happier if you do!

 

Posted by


Carolyn Shipp
Source 1 Real Estate
Mineral Wells, TX 76067
(940) 445-0006

Comments (4)

MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

So true! Do NOT apply for a new credit line of any type until the loan is closed!

Jan 25, 2017 02:29 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I have heard this so many times, usually when the buyer didn't know the ramifications. But if they have been told then they should certainly listen. It is awful to have gone so far through the process only to be denied. 

Jan 25, 2017 03:49 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

And please don't change jobs the day before closing either, even if it is a better paying!-Kasey

Jan 25, 2017 06:53 PM
Carolyn Shipp
Source 1 Real Estate - Mineral Wells, TX
Mineral Wells Texas Real Estate

We have had one change jobs during the process, but it was in the same line of work & he had been in that field for many years, so the sale took place. But, definitely, it is never a good time to make major changes like that until after you are in your home. It's not like it used to be where they only pulled your credit once. Now they pull credit several times during the whole process.

Feb 03, 2017 06:51 AM