First Time Home Buyers–Beware!!!
December 22nd, 2007 Categories: Buying a Home in NJ, NJ First Time Home Buyers
Another First Time Home Buyer Disaster
Please Don’t Let This Happen to You
Janis Gagliardi, a real estate expert in Port Orange Florida, shared this DISASTER story of a First Time Buyer in her PortOrangeJuice.
Anyone, Anywhere in the country buying their first home should follow her advice:
“We searched and found a beautiful home for a young couple a few months back and successful negotiated and went under contract. The couple was pre approved by their lender and had provided the document to the sellers which helped solidify the deal.
Just before closing their credit was pulled again as underwriting normally does. Our customers (buyers) received a call from their lender and much to their horror were informed that they were not approved to close.
To make a long story short, they had given a family member a credit card to a furniture store and over $10,000 in furniture had been charged to their account! The lender disapproved the loan. Not a pretty story!â€
We always inform our buyers not to charge anything, change jobs, or buy a car before closing.This has been known to end many a sale! It is very important to not charge anything or apply for other loans during this sensitive period.
Please follow her tips to make sure you close on your loan…
putting you one step closer to buying your First Dream Home in New Jersey:
DO NOT increase your credit card balances and or loan balances
- DO NOT apply for additional or new credit, or put balances on a paid credit card
- DO NOT ignore late payments and/or collection notices that you may get during the course of your loan
- DO NOT purchase anything that is “the same as cash†– it will show on your credit report as a debt
- DO NOT buy furniture, cars, or appliances until after closing. There will be special sales that happen throughout the year. What good is furniture if you don’t have a new home to put them in!
- DO NOT lend money to family members, friends, etc. if you need it for closing.
- DO NOT store your money at home. Place it in a bank account so that it can be documented as savings throughout the loan process.
- DO NOT have overdrafts on your checking account”
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Thanks for the mention and the link! It is so important that we forewarn first time home buyers in News Jersey so they may close their loans and are able to buy their dream homes!
Comment by Port Orange Juice — December 25, 2007 #
This information bears repeating over, and over and over again! I too have had my share of buyers who didn’t follow the guidelines laid out by their lender and myself. In the end, it can be devastating. Nice job sharing with your NJ buyers.
Comment by Chico CA Real Estate- Sandi Bauman — December 27, 2007 #
Janis reminded us of how important it is for us as realtors to make sure our buyers realize that buying a home is a little more serious than a car- especially in today’s credit market.
Your buyers may know that their are going to pay their housing market- but some underwriter sitting in an office just sees them as another application and isn’t ready to make any exceptions.
Comment by Mary De Luca — December 27, 2007 #
Back from a week on the slopes of Snowbird, Utah and want to thank you all for checking in. As we enter 2008, my sellers are VERY concerned that potential buyers won’t follow these guidelines and gunk up the sale.
It is up to the selling realtors to pass these tips along to the buyer’s agent and their clients as well
Comment by Perri K. Feldman — January 3, 2008 #