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.
Loan 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.
Within 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.
I 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
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