While perusing a fellow blogger Janis Gagliardi's recent post it occured to me that the message bears repeating for potential Chico CA buyers.
Here is the full story, courtesy of PortOrangeJuice.
I myself have had two different buyers in the past year or so that were stopped cold in their path to purchasing a new home. In a nutshell, the escrows had progressed to within a day or two before the closing. In both cases, the lenders re-checked the buyers credit and employment status just minutes prior to funding the loan.
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Short escrow? Get your ducks in a row BEFORE you make an offer.
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Sandi,
Great reminders that can't be reiterated enough. How sad to have an escrow crash and burn because an over zealous buyer purchased new appliances before the escrow closed.
Sandi,
People keep doing this with regularity and it's very unfortunate for everyone involved in a transaction. It can't be repeated often enough that don't do these things while in escrow. If you do, great harm will follow.
Part of my Mortgage Concierge Package has a list of Dos and don'ts. I explain it to them and repeat it to them several times.
Fran,
That one truly was painful to watch. Especially since they had been educated by both myself and the lender! They mistakenly thought they were far enough along that no one would find out. Luckily, my friend Ken Philliips is quick on his feet, and eventually got them into another loan. However, there was a delay, and a few days of sheer panic!
I hope buyers are reading and listening :)
Esko- I really am not quite sure why people are willing to risk it, despite the warnings from the professionals they hired to guide them!?
Dave- "repeat several times" is a must. Better to drive them nuts with repetition rather than watch them lose their dream home!
The best is when they buy or lease a high end car because in their words I didn't realize my credit was so good. I never would have thougt about doing this before.
It is at this point you suggest they should have bought an RV because they will be sleeping in it.
Whoa! That's one I hadn't heard before... your response is priceless :)
It's amazing how many people think it's OK to buy things after they have initial approval.. I had one who bought a new car, another on decided to refinance one of his properties and take a large chunk of cash out.. Now I just ttell them upfront.. don't buy anything except groceries until after escrow closes..
I could not have said it better myself. I had a client take out a $3000 loan a couple of day's after we put in a offer on a home, don't have to tell you what happen next.
Thank you!
What a great post, we see some crazy things in this business and this happens all too often. I hope everyone ever considering to buy a home finds this post! Should be featured...it's not too late you know!! :-)
Sandi - Good advice....they are really simple things but there are plenty of people that don't know how little things like this can affect your credit - this is a good education for those that have never thought about it.
and don't get fired!! :o ) Great list Sandi. It seems simple, but people often in the excitement of moving.
Sandi - thanks for the note today :-) - Great post and lots of wise tips for those buyers today!
Sandi, this is simple stuff but buyers really do some dumb things even after we warn them not to do them.
This is an important message...for buyers across the nation. Prior to real estate, I was in lending. This time of year was particularly painful as people felt obliged to dish out the gifts for Christmas, or treat themselves to items and their credit would alter enough to have problems. People need to hear this from their lenders and their Realtors.
Natalie- The lender/realtor relationship is key. If both are sending the same, critical messages to the buyer, they have a better chance of realizing their dream home. It's great that you know both sides!
Lizette- Very simple, yet people still get themselves into hot water!?
Cyndee- Thanks for stopping by.
Ginger- "and don't get fired!" is right! Crazy that it has to be said, but it happens.
Bill- Seriously... the little things can have a big impact on a loan package that was tough to put together in the first place! If you barely qualified with your credit as is, it only stands to reason that if you add on more debt, you may bump yourself right out of a loan.
Brad- Crazy things do happen, and always at the last minute! Thanks for the thumbs up... I guess you were the only one who thought so!
Lorinda- I guess it was better to have it fall apart right away, rather than at the very end of a long escrow? Still, very frustrating for all parties involved.
Kaye- I would think a car purchase would mess with the ratios just a tad... just goes to show that oftentimes people act without having a true understanding of the process.
Great tips to carry over to the new year. Have a nice new years.