Three Dont's To Share With Buyers to Ensure They Close
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Some home buyers inadvertently create stress for you and their lender before their financing closes. It's why many seasoned agents coach their clients upfront on what they should never do. Here are three don'ts to share with buyers to ensure they close:
Don't buy a new car before closing.
Purchasing a home can result in a lot of excitement for your clients. Some may think that another major purchase will complement their new home. But large purchases, such as new furniture or vehicle, could disqualify them for a mortgage by lowering their FICO score. Tell them to wait until they close to make big purchases.
Don't make large bank deposits.
Underwriters are reviewing your clients' bank accounts throughout the mortgage process. Any large deposits will require letters of explanation because they're considered 'red flags.' It's better for buyers to avoid any large deposits, or suggest they speak with their loan officer for advice.
Don't apply for credit.
When lenders are working to verify a borrower's income, they look at their debt-to-income ratios and pull credit. Tell clients to avoid opening any new lines of credit before closing, as it could increase their mortgage's interest rate – or worse, they may no longer qualify for a loan.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.