Don’t You Dare Extend Any New Credit!
Buyers, please heed this warning, because this is something that can be completely devastating.
And sellers, you might be blindsided.
If the buyer is getting financing, do you know what happens the week before closing?
They pull the applicant’s credit again.
Why do they pull your credit again?
Because they’re looking to make sure no new debts have popped up since you applied.
They will hold up closing, and they will have to requalify you.
You go and get a new credit card.
You go and purchase a bunch of furniture or appliances on credit, because you get 0% financing.
It sounds like a great idea at the time.
I always make sure, if I represent the buyer, I’ve scared them to death, so much so, that they will call me sometimes and ask me and say, “Hey, I really wanna buy this furniture, but I’m so scared because didn’t you tell me that I couldn’t do that?”
You are not to extend any new credit until after you close. Why?
Because that lender is going to say, hold up a second — we pulled your credit, and now you’ve got a new debt you did not disclose prior to. So what we’ve got to do is we’ve got to stop everything.
Make sure your debt to income ratio still qualifies you for this interest rate, this loan product, or still qualifies you in general.
And I always say, you might not qualify again.
You might even lose this house.
I’m making sure that they understand
every step of that process,
and I know what’s going on.
- Cori Radley