If you are in the process of buying a home with a loan, try not to use your credit or change your income without talking with your lender first.
Within the past month, two of our listed homes fell out of contract because of buyer side financial snafus.
The first sale fell out of escrow because one of the buyers changed employment. The move up position was an excellent opportunity because the buyer would be earning more money. However, the lender requires time on the job which was impacted by the buyer’s move. That buyer no longer qualified for a loan.
The second transaction was cancelled because the buyer financed a truck. The vehicle loan impacted the buyer’s purchasing power and credit. Consequently, the buyer was no longer able to purchase the home.
In both cases, the buyers were devastated by the loss of their dream. They will likely need to wait 1 to 2 years to purchase a home with conventional financing.
Unfortunately, the sellers were also impacted with longer escrows, but they will recover faster and will finish selling their homes to backup buyers this month.
With the cost of homes what they are today, the ability to qualify to purchase can be very tight. A difference of $100 a month can devastate the buyers ability to obtain financing. Likewise, even a lateral move to another company can lead to the loss of loan qualification. Remember to run every financial change by your lender first.