This list is not in any particular order. Number 1 isn’t more severe than Number 10.
1. They get pre-approved before talking to an agent.
Let’s make sure we’re being clear on one point. Most agents want their clients pre-approved before showing them properties. The difference is that clients get pre-approved before talking to an agent. But here’s something to think about. Only 32% of home buyers report a positive experience with their lender. Over 1/3 of home buyers reported a “very to extremely stressful” home purchase. Why?
Because their lender can’t close on their deal.
Agents are known for being able to close deals. And agents work with lenders who they know can close on a deal. If a lender can’t close the loan, you don’t get your house and nobody gets paid.
A few months back, I watched in horror as a lady-client was badgered nearly daily by a loan officer who could not get her home loan closed. We finally had to switch lenders and the new lender closed the loan in 2 weeks. Just for the record: a recent report indicated that only 32% of home buyers had a positive experience with their LENDER. Listen to your agent!
2. They get a new credit card.
For some reason, when shopping for a home or even in escrow, people seem to want a new credit card. If you’re shopping at a clothing store and the cashier asks you if you want to save 10% by getting a store charge card say NO! A new credit card means they will run your credit which drops your credit score. And because you were approved, the lender now sees you have a new credit card with a new debt limit. Both the credit score drop and the credit limit impact your loan.
This is what I did as my mistake new home buyers make. I did this when I bought my first property. Two days later, the lender called me absolutely irate because my credit score dropped, thereby increasing my monthly payment an