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 Friday, July 09, 2010

Buyers,

Do not and I mean do not go out and buy, breathe or inhale in another debt prior to closing on your new home that you are approved for!  It is hard enough to get approved nowadays, and let me tell you, your credit will  be without a doubt re-pulled prior to closing.  Have you purchased anything new after the lender pre approved you based  on your credit score and (pay attention to the next 2 words) debt ratio??  Which was fine until you the buyer decided that a house full of furniture or that car you have been dreaming of to park in your new driveway would just be great!!! I mean now that you have been approved and all? What could it hurt? Let's explore, your final underwritten approval....JUST DON'T DO IT!!

Your credit will be re-pulled...

LOUDER....

Your credit will be re-pulled prior to closing! 

That you can take to the bank literally!

As tempting as it may be to run to a furniture store, or auto, boat, recreational dealer! Hold on to your britches! You are not out of the woods yet!! It is stringent and hard right now to get a loan!  Don't make it easier for a bank to turn you down!

Don't go having credit card companies, retailers re-pull your credit report to get that stainless steel zero refrigerator trimmed in cherrywood, something you just have to have in your new home!  Untighten your belt, get a grip and take a deep breath and say this can wait,,,,I can do this...practice yoga, run, walk and do this by staying away from financing any thing other than your home while being considered for the final loan approval! I am speaking from experience with clients who have lost homes due to the very issues I raise!  And if you decide to spend your closing costs...DO  NOT I REPEAT

DO NOT BORROW FROM A CREDIT CARD OR OBTAIN A OUTSIDE BANK LOAN TO BORROW FROM TO BUY A HOME BECAUSE YOU CAME UP SHORT with $$$$ when time to close!!!

Gift funds from family can be used along with a gift letter provided by your lender but there are guidelines to that as well!

Trust me...your credit shall be re-pulled and banks want to know if you can afford this purchase!

IF YOU CAN'T WAIT UNTIL A LOAN IS APPROVED TO TAKE ON ADDITIONAL NEW DEBT..

before you even close, then maybe a home purchase is not in your best interest!

PATIENCE IS A VIRTUE!!!! Be Virtuous and throwing in frugal helps! I hope this also does not encourage especially 1st time buyers to  incur a bunch of debt after purchasing their first home.  Keep in mind ..that placed banks in the position they are in now to blame the new applicants for the banks past mistakes of lending and predatory lending that they now over scrutinize for their past sins and foibles (which I am darn mad about and find it  unfair to buyers of today) and it is becoming harder to get approved on its face, so don't fall for, you are approved until you have closed...I believe moreover the TARP money was used as it should, to LEND, stimulate the housing market etc Friday, July 09, 2010. So, we have to be wise!

Trust me ...I understand,,TEMPTATION CAN BE MEAN SPIRITED!

Good Luck!

After all if we all knew everything, we wouldn't have a reason to spread knowledge!