Written By: Elizabeth Porter
Imagine this: the perfect home site has been selected, a brand new beautiful home is being built for a family and and just before closing we find out they are no longer approved for their mortgage, therefore cannot close. As a homebuilder, this is one of the toughest situations we deal with and it can happen easier than you think.
Here is your warning: your mortgage company WILL be checking your employment, assets, and credit just before closing.
Reason #1 – New credit lines and/or inquiries (non mortgage related)
This is probably the most common of the top three ways buyers lose their home just before closing. It most commonly happens around the holidays.
It can be so tempting to get a department store credit card for those holiday purchases. Sometimes there are bonus gifts for new credit account holders, low interest rates, deferred payments and/or points given for every purchase that can be cashed in towards gifts.
DON’T DO IT! There is no sale at Kohl’s or Best Buy worth losing your home. Your mortgage lender will be re-checking your credit in the days leading up to closing and you jeopardize your approved buyer status if your credit report shows any changes.
Reason #2 – Major purchase: car, computer, furniture or jewelry
When you are waiting to close, any purchase outside of rent, mortgage or utilities should be discussed with your lender BEFORE you consider them. I have seen too many times a car, furniture or engagement ring be the reason a buyer gets the dreaded call informing them they cannot close on their new home.
It’s emotional, exciting, and a huge personal accomplishment to put yourself into an approved buyer status. The car, jewelry and new furniture can wait until after you move in.
Reason #3 – Job change
Why, oh why would you quit your job while we are building your new home? A new home can give you that mental “fresh start” and it sometimes encourages us to look at all aspects of our life for improvement but whatever you do, DO NOT leave your job! This can immediately put your approved status to a screeching halt.
If you can’t be with the one you love, love the one you’re with……at least until after closing.
Now is a great time to buy a new home. Interest rates are still near historic lows. It has become more of a seller’s market this year, meaning inventory is tight and homes are selling fast. Interest rates are expected to continue having small increases as the year progresses.
The market has changed. Get in while you can.
We’ve got lots of advice for buyers here: https://www.adamshomes.com/category/c20-blog-a-news/c22-advice/c71-buying-a-home/
About Adams Homes:
Founded in 1991, Adams Homes is known as the premier home builder and is one of the largest privately-held home building companies in the southeast. Adams Homes has built more than 40,000 new homes since 1991 and builds in seven states including new homes for sale in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee with corporate headquarters in Gulf Breeze, Florida.
Discover all Adams Homes’ communities, model homes and homes for sale on our website, www.AdamsHomes.com. We have new homes for sale perfect for the first-time buyer, move-up home buyer, who desires to upgrade to a more accommodating new home, and the empty nester who desires to downsize to a smaller home.
While you’re at our website, explore our mortgage calculator and obtain financing information.
Connect with Adams Homes: