Don't do ANYTHING out of the ordinary!

I am certain this will end well. But a note of caution can never be bad, right?

There are so many things that can go awry in the short 30 days that it takes to close a mortgage loan. We've all become fairly adept at predicting the signs of inertia and heading them off at the pass. But occasionally one or more parties to the transaction will throw a totally perplexing wrench in the works and we're forced to get a little creative. Don't get me wrong, we're more than capable of being creative, it's just that these things should be avoidable. We caution our borrowers, we caution the agents, and we caution again just to be sure they heard us... and yet here we are.

You have to know that when you’re borrowing money to buy a home, there are a few things (more than a few I’ll admit) that you need to do; provide proof of employment, adequate collateral (appraisal of the property), enough liquid cash to cover all of the provisions in your contract and all of the associated fees. What people seem to forget is the short list of things they should NOT do! These are the ones that seem to get us in trouble. These are the things everyone should be aware of while their mortgage is being approved:

-          DO NOT quit your job. Now, you’d think this would be a no-brainer but it would appear that it just doesn’t occur to some people, so Don’t Do It!! Do Not Quit Your Job. Your income is the foundation on which your entire approval rests.

-          DO NOT make any major purchases. This situation is a little more subtle so I’ll explain. When you’re being approved for a mortgage, all of your debt is taken into consideration. Every time credit card balances go up, or account balances go down by any substantial amount, not only does your ability need to be reassessed, but you may exceed allowable ratios (the delicate relationship of debt to income).

-          DO NOT make any payments late. Again this should be obvious. A late payment of any kind is a huge red flag indicating that you may not be a reliable borrower.

I say this stuff all the time, to every client, at every application;  If you’re thinking about buying a car or a house full of furniture, if you’re determined to switch jobs or fire your boss, if you’re unhappy with your credit card company or you disagree with the yearly fee on your checking account, WAIT 30 DAYS! That’s it, just 30 days. You’ve probably already waited a lot longer that that so just don’t do it now, wait 30 days. Once your mortgage has closed… have at it! (with caution of course)
Suffice to say that one of these things happened today. We will fix it and all will be ok. A year from now everyone will forget that it happened, but for today I feel the need to reissue this admonishment: if it’s on the DO NOT DO list, don’t do it.