How many of you know this song? "Buyers, whatever you do, don't establish any more credit until after the closing.
Chorus: Don't even think about it.
Repeat, repeat, repeat.
You're out doing your holiday shopping. It's 11:45 pm .. and you're in that store because they have exactly what you want and have been looking for ... at an unbelievable price, but only if purchased during the hours of 10 pm to midnight.
Plus, in your hand you have an additional coupon that you found at an online site. The coupon will give you a whopping and additional 10% off your purchase!
It's your turn up at the register and you're feeling like a California goldminer about to hit the motherlode. The clerk behind the register now utters words that will cause a meltdown in any frugal shopper's heart ...
"Would you like to open up a "fill in the blank" credit card to save an additional 10% on your purchase today"?
You can feel your heart racing. You almost feel faint. But somewhere in the back of your mind is this faint voice whispering to you. It's your damn pesky butt-inski mortgage banker's voice. And he's/she's telling you ... "Don't take out any new credit or run any more credit reports without checking with me first. It could sink your loan's approval. Hinder or stop your loan from closing".
Oh man ... what to do? What to do? An additional 10%!
Let's do some simple math. Let's say what you're going to buy is a fairly high ticket item like a television. It's a big one and typically well over a $1000 dollars. It's on sale for $768.00, with another $100.00 off if you purchase it during the special late-night hours.
You've got that covered and have whittled the cost to $668.00. Your internet discount coupon takes another 10% off the price, leaving a cost of $601.20. Tack the additional credit card offer ... another 10% off ... and you're now buying the TV for $541.08! $541.08!!!
You can feel the sweat pouring down your back. But you hear that obnoxious little voice again ... whispering "Don't do it"! Do Not Do It!! Seems you might need some common sense smack talk right about now.
Do you really want to risk your beautiful home's closing ... lose the perfect home at the unbelievable price you negotiated? Do you want to throw away all the hard work and saving you have done for your home?
Is forfeiting the unbelievable amount of paperwork and documentation you had to fork over during processing what you had in mind?
You might be doing exactly that ... and all for a 10% off offer that equals $60.12. Is it really worth it to you?
I am being perfectly honest when I say, "it has happened". Because clients didn't weigh they're options carefully, plan their expenditures, deny themselves, didn't believe or follow their mortgage banker's advice, or just temporarily lost sight of their goals ... the ability to close on the house they wanted and loved so much was lost. LOST!
So think very carefully this holiday shopping season about your credit and financial decisions should you be in the process of closing on a home ... or thinking of buying a home in the near future. That small store credit card and small $60.12 in savings could mean a huge loss to you or your abilities to buy a home.
Don't let this holiday season's temptations bite you. Remember your ultimate goal. Don't save yourself OUT of your new home ...
* Work with a mortgage banker that offers you solid, sound advice based on over 35 years of successful mortgage banking experience and expertise. Contact me if you need mortgage lending advice and service. Cell: 708.921.6331. Email: firstname.lastname@example.org. Or through my website: http://www.genemundt.com.
Charita Cadenhead, Your Metropolitan Birmingham, Alabama Real Estate Broker of Choice
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Charita H. Cadenhead, Realtor®
Keller Williams Realty Metro North
Gardendale, AL 35071
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