Friday, June 13, 2008


You know how you hear about people getting "pre-approved" ? They went to the bank, just like their Realtor told them to do, they discussed their financial situation with a loan originator, and they walked away with a piece of paper that reads something like, "CONGRATULATIONS! You can now shop for a home with confidence, as you have been approved for up to $XXX,XXX for a mortgage!...."

What some buyers don't realize is that if ANYthing changes in their credit or job or debt load between this letter being written and a closing.... the loan can be turned down! Even the day before the closing!

"But wait!" everyone involved screams. "I thought they were pre-approved!" Well, they were, but now we can't get a "Clear To Close". A CLEAR TO CLOSE ???? this is a relatively new step in the process that allows the bank to delay or stop a closing if they research the applicants and see new debt, job changes, irregularities, OR they can't get the money at the same terms that THEY thought they could....

So the bottom line is, once you get "pre-approved" and more so, once you actually apply for a mortgage...
Don't incur any additional debt... no matter how small... and most important: Keep paying your bills. Don't miss a payment by even a day!

Don't mean to scare ya, but if you want this to go to a closing, you have to be very disciplined.

Keep on rockin! Have a great day!

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