Recently I heard about a buyer who was in the process of buying a house. The purchase and sale agreement had been executed, the first and second deposit checks were escrowed and the financing had been approved. In other words, the closing had been scheduled and the deal was just about complete. Somewhere between the time the ink had dried on the contract and the scheduled closing date, the buyer decided to purchase a new vehicle to park in what "he" thought would be "HIS" new driveway. The buyer had no idea that the bank would be running another credit inquiry close to the closing date to confirm that the buyer could STILL afford the loan and hadn't assumed any NEW debt. Well I'm sure you can imagine what they found. The newly acquired car payment changed the ratios and the buyer no longer qualified for the home loan. He lost his deposit, didn't get the house and his new car wasn't big enough for his family to live in. This entire scenario could have been avoided had the buyer simply waited until AFTER the closing to buy the car.
It's common practice for lenders to verify employment and credit a second time just before the closing. It's not a good time to make any purchases that will entail credit inquiries. Say, "NO THANK YOU" when the clerk at Macys offers you 10% off if you open a card. That trip to Jordan's Furniture could cost you your house. And definitely don't buy a car. WAIT until AFTER the closing. Here's a list of 10 Things You Shouldn't do Before Buying a Home.
Having constant face-time with our very diverse group of preferred lenders has its advantages. It's like having our own lending education department right here in our office. We are always on the cutting edge of what's happening in the lending world and that allows us to educate our clients on the most current trends, programs and of course, rates. More importantly, it helps us to be proactive and protect our clients from potential complications during the loan process. We pride ourselves on continuously educating ourselves and building relationships with like-minded professionals. We strive to provide you with the proper tools and education in the beginning so there are no surprises.