If you are in contract to purchase a new home, then there are several possible pitfalls to consider avoiding. If you are a cash buyer (not taking a mortgage) then these considerations do not apply. However, for people that need a mortgage and have a mortgage commitment, there are some actions which they may want to avoid.

Over the years I’ve had clients who have had difficulties with their mortgage commitment prior to the closing. Several clients bought expensive new cars. A few bought a lot of furniture with credit cards. Other clients changed jobs. The mortgage lenders were “right on top of this” – they became aware right away and threatened to withdraw. The people had to scramble to satisfy the bank’s financial requirements.

Finally, the mortgage banks often ask for documents right up until the end of the process (even just before the closing). It can be stressful to comply with them. They may ask for bank statements, tax information, etc. It’s a good idea not to change personal banking arrangements because the lender may not want to check paperwork with your old bank. Call me. Love, Robin.   

By Robin Shapiro

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