Making Your Connecticut Home Purchase Primary

By
Real Estate Agent with Mapleridge Realty, CT 203-206-0754 REB.0759001

Making Your Connecticut Home Purchase Primary

The dream of home ownership has never been stronger than it has the past couple of years.  Interest rates were at historically low levels and buyers were into bidding frenzies to get their piece of the American Dream.

Amid the anxiety, it was very easy for buyers to get so emotionally involved that they would forget what they had been told by their loan officers and agents about keeping their spending under control.

Making Your Connecticut Home Purchase PrimaryLoan officers will talk about debt ratios and how important they are to a credit score and also getting a more favorable loan interest rate.

Buyers will be warned about not getting any new credit cards, or even dropping existing cards.

This advice can get lost once the emotions of having a house under contract hit.

Sadly, I have experienced 2 instances where the enthusiasm got carried away and also the home purchase was lost.

Buying Furniture Prematurely

A buyer asked to go back into a house so that they could measure the rooms. As the sellers had already vacated, even though closing was not yet established, they agreed .

The buyers were there for an hour and measured and talked and their joy was boundless.

Making Your Connecticut Home Purchase PrimaryWithin a week, their loan officer called them to ask what they had done as their credit score dropped and their loan was in jeopardy. They admitted to buying new furniture not thinking it would matter at this late stage in the process.

It took some work on their part and fortunately for them, they got a family member to help them out. There was a delay in the closing, but it got done.

Can You Sleep in the Car

Sometimes an issue will present itself and a person loses their focus. I had a buyer that was just finalizing their down payment funds and were to meet with them to prepare a contract for their dream home. They were selling their condo to an investor that was buying all the units in the complex and the price was to the buyer's advantage as they had held out longer than anyone else.

Making Your Connecticut Home Purchase PrimaryI waited at the house for them to arrive. When they did, I just stared as they walked over to me. He was beaming and asked how I liked their new car.

I asked why they bought it and he explained that he had been having issues with his older car and just got tired of all the repairs.

I then proceeded to tell him that he could not buy a house now. I explained why and suggested he call his loan officer. He got on the phone, and I could see the change in his face as he listened. He explained to his wife what he was told, and she started to cry. 

They did not buy a house and as his credit would have been tight for a few years, I did not hear from them again.

Summation

Buyers need to heed the information given to them by the people helping them to buy their house. The experience of a loan officer or an agent will always be well beyond the guessing or instincts that a buyer may have.

Making Your Connecticut Home Purchase Primary

Posted by

 

Edward (Ed) Silva
Broker Associate

Serving Central Connecticut Sellers and Buyers

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Comments (17)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ed, I have heard of buyers making a large purchase, and affecting their ability to get a loan, but luckily, none of my buyers have had this happen.

Mar 18, 2023 06:50 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Ed Silva hi Ed... something that has never happened to one of my clients... then again, I beat into their brains regularly not to spend money on anything until after they close on a new home.

Mar 18, 2023 07:08 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Ed Silva 

It never ceases to amaze me that buyers don't even think before they make a major purchase when they are buying a home! Its the first think we talk about and I warn them no big purchases to throw off their ratios. They always look like its a light bulb moment!

Mar 18, 2023 07:10 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ed Silva - those are two stories that tug at your heart. The first story gave the buyers a second chance. A chance many buyer never get but it was a close call to nearly a disaster. 

The second story you shared really, really tugged at the heart. Many buyers get closer to closing and then get sidetracked by an idea that make sense at the time, but was a big mistake. It cost that couple a lot of grief. This is why it is so important for buyers to confide in their trusty real estate agent and Lender when buying a home. Whether it is pre-existing or new construction, the rules for financing are the same. 

Don't buy anything before closing that will risk your ability to still get the loan before buying. 

Thank you for a really great entry for the March to a Solution|ActiveRain March 2023 Challenge

Mar 18, 2023 07:11 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Ed, 

You make some very cogent points that buyers need to take into consideration.  I had a buyer that changed loans because they got a better interest rate on a 7 figure home purchase. Right near the end of the closing it fell out because the investor pulled out. It was around the same time as the crypto crash!  

Mar 18, 2023 09:14 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Ed  and thank you for sharing this blog with us here in the Rain.  Hope you had a great St. Patrick's Day!

 

Mar 18, 2023 09:16 AM
Roy Kelley
Retired - Gaithersburg, MD

This is good reading for prospective home buyers. 

Have an outstanding weekend.

Mar 18, 2023 11:14 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Ed I have had both of those things happen more than once.  No matter how much I emphasis DO NO MAKE ANY MAJOR PURCHASES, they still do.  They are like kids.  They want what they want, and do not think about the consequences.

Mar 18, 2023 12:29 PM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I once had a couple that gave up buying a home because they lost several Multi Offers . They called me 4-5 months later to get started again. I asked them ( to confirm ) did they still have $10,000 to invest . They told me NO , we only have $3,000. I asked them want happened ? They said after losing the housing bids they were down , so they took a trip to Disney World  

Mar 18, 2023 01:14 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Ed- I don't think an agent or loan officer can say it too many times...don't make any major purchases!!!

Mar 18, 2023 05:04 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Ed:

This is an issue that buyers need to be reminded off multiple times, with an explanation of why...but even then some buyers don't listen and go off on a spending spree before closing. So sad when their joy turns into sorrow at what they have done despite being told not to do it.

Jeff

Mar 18, 2023 08:05 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Oh my gosh, don't buy anything until after the closing!! I had a buyer lease a car and it was a $400+ monthly payment. We didn't know until the last minute - I don't know how it closed but it did. Phew!

Mar 19, 2023 05:19 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Buyers can really ruin their chances of owning a home if they make large purchases before their loan is approved and funded.

Mar 19, 2023 06:22 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I send a letter to buyers immediately after contract ratfication summarizing the contract for them, explaining the way the home inspection works, and warning them NOT to buy furniture or anything expensive

Mar 19, 2023 05:57 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Ed Silva It was not my client but I know an agent whose buyers did the same thing - purchased furniture.  Fortunately, the store allowed them to return it all so they were able to close once the credit went back to their credit card.  

Mar 20, 2023 04:02 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Ed Silva - I found out where to find the FEATURED posts! My apologies for not congratulating you when you received the FEATURE on ActiveRain. 

CONGRATULATIONS! Sometimes I have to recite the Serenity Prayer to remind myself of what is and what is not within my control. Although I never had a situation of not closing because the buyers bought furniture and other high end items before closing, I almost had a closing that did not take place because the first time Mrs. home buyer announced at the Closing Table, she couldn't wait to sign and get the keys to the house because she quit her job and was ready to start practicing to have a baby. I wasn't the only one who nearly fell on the floor, the Escrow Officer and her Husband were just as shocked. The closing stopped. The Mrs. called her employer and begged to get her job back, she was reinstated and we did close but it was delayed and touch and go with the Lender.

I share this, because we can never assume we repeated enough what a buyer should not do while in the proces of getting a financial loan to buy a house. I am so sorry, yours did not have a happy ending. Help us to accept the things we cannot change and to change the things we can.... 

Mar 23, 2023 07:31 PM