Wayne Turner with Turner Real Estate Group in Mandeville, La. is back with the Daily Real to talk about what things to expect after a contract has been accepted on a property.
Wayne goes over how as a home buyer, you want to get preapproved prior to beginning your home search. This is because it can help you purchase a house easier and faster than if you just did a prequalification. If you find something you want to write an offer on, and have to wait to get a preapproval completed, you could miss out on the home to a buyer that already has their preapproval ready to go. Having a preapproval done beforehand also helps the buyer and agent have a better understanding of where the buyer stands, so that no time is wasted by either party looking at houses that aren't within the approved price point.
Wayne begins telling a story about an approval. When speaking to a lender, a lender can't divulge some of the buyer's financial info to the agent. Recently Wayne was representing a seller and received an approval letter for a sale. The buyer then went on to finance furniture on credit, which changed their credit score and affected their approval status.
Your buyer agent should always prep you with this info, but in case they don't here it is: never buy a car, open a credit card, finance or refinance anything when buying a home. Don't do anything that affects your credit score or changes your debt-to-income ratio. This often will keep a buyer from being able to secure financing, and the sale will often fall through. Expect your lender to check into your credit, job status and more the day of the closing. It is best to wait until after the sale to purchase furniture, a car, or anything else you may need.