Whether large purchases are made with cash or credit, any noticeable change to one’s financial status can have a major impact on pending loans. That is why my ‘Word to the Wise’ today calls for you to join my mortgage lender in educating buyers before they find themselves in a pickle. Get to know the following 10 Commandments, and you will always know how to advise your clients when financial matters are discussed.
- Thou shall not change jobs or become self-employed
- Thou shall not buy a car, truck or van unless you plan to live in it
- Thou shall not use your credit cards or let your payments fall behind
- Thou shall not spend the money you have saved for your down payment
- Thou shall not buy furniture before you buy your house
- Thou shall not originate any new inquiries on your credit report
- Thou shall not make any large deposits into your bank account
- Thou shall not change bank accounts
- Thou shall not co-sign for anyone
- Thou shall not purchase anything until (way) after the closing.