Yesterday, I had to sit down with a client that I've been working with for the past four months to help her and her family buy their first home, and give her some bad news. In the beginning, I sat them down, did all the speeches and gave them the stories of past clients, but once again, they seemed to have missed the stories and now I have to sit and watch the tears roll down her face.
You see, this is the part of my job that I hate, telling a person that they have to unpack all their boxes that they had loaded in the truck for their pending move. This is when the tears start to roll down the face of the mother that has to tell her kids that the room they had just packed up, because they were told they were finally going to get their own room, has to unpack those boxes and stay put.
The kids got upset because they had slumber parties planned at the new home with their friends and now they have to call and say, "We aren't moving after all" and the party has been canceled. You have to explain to them that the $5,000 they put down as earnest money is now also gone because of the breach of contract.
You see one of the things I stress to people in our initial meeting with me and their mortgage broker, is that once you are pre-approved, I don't want you doing anything that has to do with money that you haven't asked us about first, especially if filling out a credit application is involved.
Well, yesterday I had to break it to a client that her house isn't going to close as she had planned and that was because when the credit company pulled her credit again they found that she bought a car last week on credit. This has now caused her debt to income ratio to go way too high and her credit score to dropped to the point that now she couldn't get a loan on the house.
You see, I don't like to see anyone cry, and to be honest it brought a tear to my eye to have to sit on the couch with her and tell her that her family now was going to have to continuing renting this place that they hated... if the landlord hasn't already rented it to someone else. If he has, they are still going to have to move and that will lower their credit score even more to fill out applications for places to move in to.
So, please don't make me have to tell you news that is going to make you cry. Listen to your real estate professionals that you have hired to help you in your home purchase. We really are telling you what is best for you and that you shouldn't buy anything large, and nothing on credit, until your home has funded and recorded with the county and you have moved in.