Patty's "All Things Real Estate" Blog.

I recently heard a story about a buyer who was in contract to buy a home, had received his loan approval, then went out and bought a car using a cash down payment!  Long story short, the loan was rejected in final underwriting review because the purchase of the new car had changed the debt to income ratio and also changed the amount of the cash reserves the buyer had on hand. 

This reminded me of a list someone had given me years ago, so I dug it out of my files, and I am posting it here to share with you~

The Ten Commandments for Buyers……. Until Your House Closes

1. Thou shalt not buy a new car
2. Thou shalt not buy furniture for the new house or any other big expenditures that affect your bank accounts
3. Thou shalt not make any unexpected or unexplained large deposits that affect your bank balance (unless it is a work related bonus, or a tax return, and then keep a copy of the check/deposit)
4. Thou shalt not apply for any credit anywhere, and thou shalt tear up all of the offers for “Pre-Approved Credit Cards” that come in the mail
5. Thou shalt not run up the credit cards that you already have
6. Thou shalt not retire or voluntarily leave your present employment or change employment status
7. Thou shalt advise your agent and your lender of any unexpected changes in your life, especially if it changes your marital status.
8. Thou shalt not leave to go on vacation during the escrow process without notifying your agent or lender
9. Thou shalt not spend money you will need for your down-payment and closing costs
10. Thou shalt not be late paying any accounts during the escrow period