Are You Still Approved?
Today we’re gonna talk about four different things that could make or break your real estate transaction. You the buyer have complete control over these items. We’ll talk about each one of them here.
Don’t Apply For Credit
The first thing some people don’t realize that can totally kill your transaction, is opening new lines of credit. We all go to department stores that offer you a new credit card. Or we need tires and they offer you an account. They offer us this great deal, apply for a credit card and receive 10% off or 20% off. You think, oh, I’m gonna save some money but you’re in escrow on a house and when you get approved you changed your debt-to-income ratio. Even if you don’t use the credit card.
Sometimes that won’t affect a buyer. But if you’re close to the margins that can really throw a monkey wrench in, could delay your closing or totally make it so that you don’t qualify for the loan anymore. So number one, do not open any new lines of credit.
Don’t Make Large Deposits or Withdraw
Number two, don’t make any large deposits that are not normal. If your paycheck is automatically deposited, that’s fine. You want your bank account to stay on what’s normal and average for you. If you sell something that’s a high dollar amount like a car, a boat and now you’re gonna put that money into your bank account, at the time you do it, you want a paper trail.
Underwriting is gonna go back and look through your bank account. They’re going look at every deposit and all of that. If you have a $5,000, $10,000 deposit and no explanation for it, it’s gonna raise a red flag. It won’t always stop your transaction, but it can certainly delay it or cause problems. So if you’re gonna sell a car or something large like that, make sure you keep a copy of the ad, a copy of the bill of sale and a copy of the deposit and send them over to your lender immediately. That way they have them and can avoid delays. Because three weeks down the line and you’re packing, you’re going to have lost it and you’re not going have it, and it’s going delay your closing. So number two, don’t make large deposits or withdrawals from your bank account.
Don’t Buy a Car or Bass Boat
Don’t Quit Your Job
The four things that you don’t wanna do during your real estate transaction, is open new lines of credit. You don’t want to have any large deposits or withdrawals. You don’t wanna go buy a new car, or a bass boat and you don’t want to quit your job. Those are my four number one things that buyers have done to sabotage their own transaction.