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Wednesday, August 6, 2014

Don’t Quit Your Job & Other Pre-Closing Advice

[Published August 7, 2014, in the Jeffco editions of the Denver Post's YourHub section]

Every now and then it happens despite our best efforts to warn against it — a buyer will do something that causes the lender to withdraw loan approval just before closing.

It happened again this week to the client of one of our broker associates. A lender called the buyer’s employer on the morning of closing to verify employment and was told, “Oh, she doesn’t work here any more.”  She had quit on Friday so she could start her own company. Nothing could be done to salvage the closing, and not only did this buyer not get the home she was going to move into the next day, but she lost her earnest money deposit too, because the loan objection deadline was a week ago.

Please, dear buyers, learn from her sad experience.  You should do nothing to affect your credit between loan application and closing!  Don’t buy new furniture for your home, don’t buy a car, don’t even pay off any debts. Your lender will pull a credit report a second time just before closing and, as described above, verify your continued employment.

Loan officers and Realtors warn their clients about this pitfall, but every now and then the warnings are not heeded.  Don’t let this tragedy happen to you!

 

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