Dee Dee Jones Real Estate Blog

A Blog by The Hampton Roads Real Estate Lady! All about buying and selling homes in all Hampton Roads Areas! Chesapeake, Norfolk, Suffolk, Hampton, Virginia Beach, Newport News, and Portsmouth!

FTC Cracks Down on "Free Credit Reports" That Just Aren't

Are you working on or watching your credit. This is great info from Eleanor Thorne reblogged to you by The Hampton Roads Real Estate Lady!  

I Also recommend http://annualcreditreport.com

Via Eleanor Thorne 919-649-5057 Cary Mortgage Loans (First Financial Services, Inc):

I'm tired of that "F-R- Double E Spells FREE" credit report commercial!    Because what they are "hawkin' is NOT free!
Free Credit Reports Are Not FreeThankfully, on March 3, 2010 the Federal Trade Commission file a revision to the Free Annual File Disclosure Rule to address the abuses and deceptive advertising for Free Credit Reports.  This was part of the new Credit Card Accountability and Responsibility Act 2009.

The new disclosure is available now, but must be used after April 2, 2010, per the FTC ruling... however the Radio and Television Ads don't have to go off air until September 1, 2010 (although the advertisements must adhere to the interim disclosure in the Credit Card Accountability Act until then.)

"The pre-existing requirement to make a free annual credit report available to consumers applies to consumer reporting agencies that operate on a nationwide basis.  The new marketing requirements apply to parties that offer free credit reports. For purposes of the requirement, a "Free Credit Report" is a file disclosure prepared by or obtained from, directly or indirectly, from a nationwide consumer reporting agency that is represented, either expressly or impliedly, to be available to the consumer at no cost if the consumer purchases a product or service, or agrees to purchase a product or service subject to cancellation."

I think this is GREAT news for consumers who have been PAYING for what services they don't need!

If you are looking for credit repair from someone who cares about your situation, and will show you how to immediately, and over time imporve your score - please call Steve Thorne, Credit repair specialist 919-649-5058  also check out this site ... it's all about credit repair and dispute information!

Buying a home in Virginia dont forget about the VHDA's new loan limits

Have you heard of the VHDA loan- it stands for Virginia Housing Development Authority it is a loan design to assist first time home buyers as well as those who have not bought a home in three years. Recent changes to this program began March 1st, 2010 and should not be overlooked.

Effective March 1st, 2010 there are now increased income limits to qualify for a VHDA loan.  Hampton Roads VHDA income limits in our area are now up to 70k up from 63k for a family of 2 or less and are now 81k up from 74k for family of 3 or more. This means the 101.5% FHA/Plus loan is open to more 1st time home buyers and re-purchasers.  This is the max amount you can make for this program.

For more info on this program go to http://VHDA.com or contact The Hampton Roads Real Estate Lady http://DJonesRealEstate.com to find a VHDA lender in Hampton Roads.

Also Remember This program can be combined with up to $8,000 Home buying Tax credit but you must be under contract by April 30,2010 and closed by June 30, 2010.

 

Don't take a fake wife to a Real Estate closing!

You must take a moment to read. This is one of the best real estate blog posts I have seen in awhile written by Bill Swanson in Omaha Nebraska.  This info passed on by The Hampton Roads Real Estate Lady.  Enjoy!!!

Via Bill Swanson - Omaha Homes For Sale (402) 964-4871 (CBSHome Real Estate):

fake wifeThere are oodles of "don't do this" and "be sure to do that" lists available on the net for real estate advice but I thought I would rack my brain of 23+ years of real estate experience for a few ‘non-traditional' pieces of advice. Everything you are about to read is true. SOME names, however, are changed to protect the... the... less than smart.

Don't take a fake wife to closing. I had sold an investment property to this particular buyer a few years back. When the title department was preparing the closing paperwork, they discovered the buyer was married. They called him and told him he would have to bring his wife to closing to sign all of the closing paperwork. He arrived at closing with his wife, getting ready to sign all the docs. The loan officer, Ted, then asked them for photo ID to verify their identities. She said she forgot her purse at home. Ted said "No problem, run home and get it and we'll get back together in an hour." What followed was several minutes of eerie silence until the buyer finally fessed up and said, "Um, this isn't my wife."

So away they went and an hour later he did indeed bring his ‘real' wife to closing, not his girlfriend. But here's the kicker, It was the wife's idea not to come. She told him she was too busy and wanted him to take ‘Amy' instead... True story...

Tell your loan officer the truth (part 1). I had sold a house I affectionately called the patriotic house because every room was red, white, and blue. The buyer had a prestigious job at a large local railroad company and his loan application went fine, or so we thought. This was before loan officers ran full credit checks and did just ‘preliminary qualifications' with income, debts, and job history.

One of the questions asked as "Mr Jones, do you pay child support?" to which "Mr Jones" answered "No." Fast forward a week when the full credit report came in and he was over $30,000 behind in back child support payments. The loan officer called him on the phone and was told the following; "Mr Larsen, you asked me if I PAYED child support, not if I was supposed to pay it. I don't pay it!" You just can't make this stuff up!

Tell your loan officer the truth (part II). Same question, a couple of years later with a young couple in the loan officer's office when the following question was posed: "Are you obligated to pay child support?" He nodded yes while she nodded no... Turns out there was a little ‘Mr. buyer' running around that he failed to disclose to Mrs Buyer... They stepped out into the hall to have a discussion and never came back in... Guess that one should have been titled ‘telling your wife the truth'.. Yikes!

You never know who's watching... This story took place before the internet when we actually had big thick MLS books that came out biweekly with all of the homes for sale in them. All the info was turned in by the real estate companies but the MLS office took exterior photos of all the homes. One of the agents in the office had taken a client out to lunch whose house he had just listed.

When they got back, the MLS books had just arrived. Don said "Hey Charlie, I think your house should be in this issue." So they thumbed through the book and lo and behold ‘Charlie's house' was in there. Upon further inspection Charlie said "Hey, what's my boss's car doing in MY driveway?" Well, you guessed it, turns out Charlie's wife and boss had a little something going on. Apparently, the boss would make sure "Charlie" was busy on projects in the office for several hours at a time. Busted!

Watch future blogs for more stories about this nutty business. One thing's for sure, good market or bad, there's never a dull day in Real Estate!

Bill Swanson is an agent with CBSHome Real Estate, an affiliate of HomeServices and Berkshire Hathaway.

For more information, email Bill at Bill.Swanson@cbshome.com.

FHA Guideline changes for Feb 1st, 2010

It is important for everyone to know that FHA Guidelines for new loans will change again around Feb 1st, 2010.  This will effect new buyers and those trying to sell a home. 

Changes are designed to help stabilize the market but the effect is to be determined.

The changes include:

1.Increase the up-front mortgage insurance premium (MIP) to 2.25%;
2.Update credit score and down payment requirements for new borrowers; (check with your loan officer) 
3.Reduce seller concessions to three percent, from six percent; and
4.Implement a series of significant measures aimed at increasing lender enforcement. 

Obviously these changes will:

For new buyers- you will need to Save and come up with more of your own money for closing cost and down payment requirements.

Thus Creating a stronger buyers market.  There will be less buyers in Hampton Roads and every where else ready to buy(preapproval and money in hand) ready to qualify for the already thousands of homes on the market.  But for those buyers that are ready this will put you in a great position to try to get a deal on price. (If the owner has equity and if the property meets FHA Appraisal guidelines) Because, you will have less competition.

Sellers will have even more competition and may be forced to do more short sales as comparable properties will start reducing prices to attract the qualified buyers, More owners will owe more than there home is now worth (appraisal wise),  And in this area with military moving in and out this will be a big problem. I can see the Catch 22 starting to brew.


New Buyers- call your lenders to discuss the changes with your lender asap.  You must understand how this will effect you before you can write an off


This info brought to you buy The Hampton Roads Real Estate Lady!

Visit my website,
Deandrea "Dee Dee" Jones
Associate Broker  Wainwright Real Estate     Virginia Beach, VA     DJones Real Estate Team
www.DJonesSellsHomes.com     blog: DJonesRealEstateBlog.info
I can help you relocate NATIONWIDE!

Confessions of an Internet Lead Conversion Addict!!!!!

Bob Stewart asked me to blog about it here we go.....My Name is Dee Dee and I am Internet Lead Conversion Addict!!!!!   There I said it and I meant it.  I am a Real Estate internet leads Addict....  But before all the lead generation companies start calling me, Please know I only deal with a select few companies and I carefully follow my own few rules.  

First you have to understand my particular situation.  I have been a Real Estate Agent 14 years since 1996.  As a wife of a 20 year so far Navy man (with no end in sight)  I have done my share of moving.  To build a Real Estate business off of New Referrals, daily contacts, and from new acquaintances AND NOT from past clients or family members, and the guaranteed sphere of Influence is not an easy task for me. 

Don't miss understand me I have a steady sphere of influence but I have always found finding real life face to face contacts difficult.  In the past By the time all the people at my local church or gym know I am an agent "Its time to move".    By the time I become my neighborhood go to expert " Its time to move." Not to mention, By the time I learn every shortcut and highway in a city " Its time to move".  Now since the Hampton Roads area has 7 bases it is not likely I should have to move again.  But as away to adapt to my career which I love, I have learn to rely on Internet Leads and now I am addicted. I also despise cold calling, door knocking, and 1980 - 90's marketing methods which I call Old Skool ways. I personally currently rely on Web Marketing, Web Advertising, Social Media, and various Internet Leads conversion systems for a major part of my business.  I also try to ingrain the importance of referral business into my friends, family, acquaintances and business partners.

Next you must understand my personality:  I am currently a broker with a private owned Real Estate Company in Southern Virginia, in Virginia Beach.  Wainwright Real Estate is a 100% company that has a niche of pretty much leaving the agents on their own.  They do review every contract and have a staff attorney and broker ready to answer questions.  But it is very far from the traditional companies I have worked for with no office meetings, no one on one accountability sessions, and for some odd reason I ABSOLUTELY LOVE THIS.  As a mother of three kids from 3 to 15 their are not enough hours in the day already plus I do believe I am 1/8th anti-social Yes I admit that too.  So one less meeting is great and I have support when I need it.  And I get to keep most of my money hooray!!!!!     I have worked for oodles of companies traditional to Internet only companies.  I have been an independent contractor as well as a salaried plus commission agent.  I have probably had every commission split plausible.  I have had awesome training from a variety of companies some teaching the newest marketing techniques and some stuck in an Old Skool twilight zone.  I have taking classes on Cold Calling, Prospecting, Door Knocking, and even mail order marketing.   I just happen to like Internet Leads!!!!! 

Now you must understand my business structure:  Generally 55% of my business is Internet based.   This can include everything from leads from my personal website ( which is funneled mostly by Internet lead generation and pay per click), Craigslist and alot of internet ads, ads for listings and personal marketing ads (I usually market on over 60 websites), and including direct pays from lead generation closings. I am also including Social media conversions and ActiveRain referrals in this category.  35% is from my sphere of influence referrals from past clients, friends, and family, repeat buyers and sellers.  The last 10% we will call Miscellaneous this is open house clients, sign calls from listings, and mail response clients, my home TV channel ads, and occasional print advertising. 

Now when rating my personal rate of return I rate Sphere of Influence the highest at one because it is the cheapest and least painful to do. Internet Conversion number two because it is the easiest, usually cheaper then Misc but can cost money, but faster to do. Misc number 3 because its more costly and/always more time consuming. 

Oh yeah I mentioned that I follow My own personal rules:

1. Watch the money and stick to my budget- I am no money bag I track the rate of return, If it doesn't work then pull out and invest that money in something else that has PROVEN to me to be working.  So to the Internet companies- If its not in my current 2010 business plan budget I do not and will not add your product no matter what you promise me, so do not call me.  Send me an email and I may research your product for adding to my business plan in 2011-if its that fabulous. I have no money to waste. In 2009 my marketing plan shuffled and shifted every quarter but one thing that was always steady was converted leads, I just had to shift the source from what leads I was converting.

2. Follow up- Phone calls and drip campaigns are the lifeline of my business.  If I'm not going to follow up I may as well find a new job or go back to the other OLD SKOOL methods.   For Internet lead conversion to work you must followup, qualify, and then guide and help that client to closing.  Otherwise you will loose the clients to the other agents that will call them back or even Jason Crouch's wife if your in Texas who will call them at least 17 times.  If they provide a number I will call but If they say email me only I abide by their wishes.

3. Simplicity- If the program is not web based or easy to use I do not use it.  I also prefer companies that have a mobile phone web version so I can access it from my phone.  If it does not have a mobile version I will not rule it out but it may go to the bottom of my list. 

4. Do what I can with my current MLS system. My area MLS is pretty limited on features we can not access a lot of programs that I want to use. I subscribed to a few $$ Internet Lead sites but my best FREE pick is Craigslist (of course it has a good side and bad side).  Bad I have been a victim of my ads being stolen and used as scams but I have not stopped using Craigslist I just monitor my ads more carefully.  I am working with one client on two listings "that are not short sales Thank God" who called me on a craigslist ad I have.   I also use Marketleader as one of my main contact management systems but my mls is not compatible with Growth Leader.   money bag

5. Oh I forgot, leave my competition in its dust.  All the agents who do not believe in the power of the internet "Eat my Dust".

These are the other AR BLOGS I MOST AGREE WITH:

http://activerain.com/blogsview/1413691/i-ve-changed-my-mind-some-agents-should-buy-leads

http://activerain.com/blogsview/1419741/finessing-the-online-home-buyer-my-view-from-12-years-of-internet-lead-conversion

http://activerain.com/blogsview/1421511/internet-lead-conversion-don-t-drink-the-orange-kool-aid

http://activerain.com/blogsview/1418514/internet-lead-conversion-they-re-people-and-they-want-to-work-with-an-expert

Also check out: http://giftofshift.com/activerain   there is important info you do not want to miss if your a real estate professional.

"For other methods of converting Internet leads, be sure to check out giftofshift.com/activerain where you can purchase a limited edition hardcover of Gary Keller's book SHIFT, which comes with a free version of the eBook Soci@l: Attract Friends, Followers and Connections to Your Business, written by Ben Kinney and Jay Papasan (in which Ben shares his 'ten days of pain' lead conversion method) as well as free audio versions of Millionaire Real Estate Agent and Millionaire Real Estate Investor all for $19.99."

 and remember

"I can dream alone, build alone and strive alone, but true success always requires the help and support of others. Please send me your referrals."   SO THINK OF ME FIRST!

THE HAMPTON ROADS REAL ESTATE LADY

DEE DEE JONES
Associate Broker

Wainwright Real Estate Virginia Beach

Thats it...............

FHA Loan Tips & Mortgage Shopping Tips - Don't be caught with your pants down!!! - Part 1 of 2

Here is the FHA reblog of the week passed on by The Hampton Roads Real Estate Lady!   If your planning to buy with an FHA loan in 2010 read this post.

Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):

 

caught with pants down

How many of you feel lost out there or even get help from someone such as a realtor letting you know that they can have their mortgage loan officer help you with your loan, yet you could still be lost. Not all referrals are good ones, just food for thought. I know this, because I have seen it happen more than it should, after a borrower comes to me after they had used someone else that was recommended. No, I am not perfect. But there is a lot more than just telling a borrower a rate and costs after looking at a credit score.

This post is not to point fingers, but to educate not only the borrower/consumer, but the realtor and some loan officers that might just do the basics. What do I mean about the basics?

Example :

Borrower : I am looking for the cheapest mortgage with no points. What can you do for me.

    Loan Officer : What is your credit score?

Borrower : 659

    Loan Officer : I could do 5.25% with zero points.

Borrower :  Sounds great.  Thanks and I will get back to you.

 

 

 

Important Update (example above) :

You should have received a Good Faith Estimate when someone gave you a quote.  To show rate, points, and fees. And that loan officer should have asked about 10 basic questions, which I will talk about below. Important news now on this….  As of January 1st, 2010, there is now a new law in regards to RESPA and new disclosures. Please read below…

 

 

 

Mortgage Goals

As of January 1st, 2010, no loan officer and or lender will be able to give you a Good Faith Estimate upfront when shopping for a mortgage. There will be about 6 triggers that have to take place for them to offer the good faith estimate.  I think this will hurt shopping for a mortgage now more than ever before.

What has always been a pet peeve of mine is that many loan officers just give you what you want to hear. Yet they don't ask you some very important questions. One of those main questions should be about your goals, no matter if you are buying or refinancing. What questions should they be asking?

1. My first and biggest question. How much of a mortgage payment would you be comfortable with?  A payment range, to include taxes & homeowners insurance.

2. How long do u plan on staying in the house. Yes, the borrower doesn't have a crystal ball, but many still have an idea. And this question should be broken down to 3 years, 5 years, and 7 years. Please read : My 10 top questions when interviewing a borrower.

 

 

 

2 very important mortgage tips :

1. Credit Scores - There are still some lenders that can do credit scores under 620, down to 550. Beware, they are almost impossible to close. I am getting about 2 e-mails a week now from borrowers that were told no problem, and the lender can't close. There are many reasons for this.

2. Making offers - I am also getting e-mails from those that just put an offer in on a house and now want to see about getting a mortgage. First and fore most, speak to a well qualified loan officer. And even though this loan officer should be interviewing you, interview them. Truly understand who you are dealing with and the company that they work for, no matter how you got their name. I can't stress this enough. SO much can be found on the internet about individuals and companies now.

 

 

 

Summary : Overall, there are going to be more issues when moving forward in 2010. Any loan officer that gives a true Good Faith Estimate upfront, could very well be out of compliance. Yet, if we aren't allowed to do this, how can a borrower shop effectively?  What, just give the borrower a rate over the phone?  That use to get under my skin from day one in this business, because anyone could do that. Rates change daily also. In any case, I will be talking about the new RESPA laws and breaking down the importance of this in Part 2. For a quick example to a negative impact on this new compliance, Gerry Suarez gives a good example of this. The Road to Hell and the new mortgage disclosures.

 

For some more good reading :

The Basics of FHA Loans - Mortgage 101 for FHA Mortgages - 08/24/09

Credit scores - FICO scores for mortgages - I need a 700 credit score?

 

 

 

  • Mortgage shopping tips - The new Good Faith Estimate, 2010 RESPA compliance issues. - Part 2 of 2

 

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Do you know of anyone worthy of the next ABC's Extreme Makeover? Urgent!!

To my Southern Friends, this is a great opportunity for those that live in the South.  

This info reblogged by The Hampton Roads Real Estate Lady!

Via Homes for Heroes, Inc.:

Homes for Heroes is asking our affiliates and friends of heroes to search your databases, to recommend a family for the February 2010 episode ABC’s Extreme Makeover Home Edition. This is of extreme urgency. We will need this in the next day or so. For the February episode, we are looking for someone in the Texas, Florida, Georgia, Louisiana, Mississippi, Alabama or South Carolina areas. Please forward any names support@homesforheroes.com Here are some of the criteria:

1. The applicant must own their home and have deed or title to it.
2. There must be an urgent need for the makeover.
3. The applicant’s home should not be a nice or newer home (remember,
they tear them down) and home should have serious issues.
4. Any extra story of deserving in an interesting way would be a nice
additional element.
5. This is not necessary but it’s always nice if there are children in
the family.

As you all have come to realize… our true heroes in need are often humble and won’t ask for help. Please obtain as much information as possible and forward it to us immediately. Time is of the essence!

 

Its ALMOST official The Homebuyers Tax Credit Extended for 2010, with a few changes!!!

Its Almost Official!!!!                     

Senate indicates that First time Homebuyers Tax Credit will be renewed until at least April of 2010!

This is Great news! Here are the biggest changes:

The credit would be cut slightly to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

This is the biggest change: The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

At this time, it is believed that the credit will allow anyone purchasing (even if the property is not closed) a home by April 30, 2010 to participate and receive the full credit available. The credit will be continued (but reduced by 2% each 90 days) through the end of 2010! The credit will be slightly lessened, but it will be renewed and this extension should allow the market to continue to recover into and through next summer's selling season. Of course, there's always the possibility that it could be renewed at that time, as well.

Here's the text of the story as reported in Bloomberg News today:
Senate Democrats on Board with Credit Extension

Senate Banking Committee Chairman Chris Dodd (D-Conn.) says The Senate has agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed - not closed - by April 30. Purchasers would have another 60 days to close the sale.

This info passed on by Dee Dee Jones Wainwright Real Estate The Hampton Roads Real Estate Lady!

How Not to Sell a Haunted House

This is a perfect blog for Halloween time, reblog from The Hampton Roads Real Estate Lady!

Via Claudette Millette - Metrowest Mass Exclusive Buyer Broker (The Buyers' Counsel):

Haunted houseWhether chains are rattling, the floor is shaking or there is simply the knowledge that an evil deed was committed on the premises, you could possibly be dealing with a haunted house, or a "stigmatized property" sale. 

Since liability issues on these types of transactions vary from state to state - what is the guiding principal for selling a haunted house? 

In 1991, a case in New York provided some legal precedent on the matter. 

Stambovsky v. Ackley

The owner of a house, Helen Ackley had reported the existence of numerous poltergeists in her home and had, in fact, publicized these occurrences in Reader's Digest and a local newspaper on three occasions. As a result, the home was placed in a five-home walking tour in the city and received an enormous amount of publicity.  She even referred to the home in a article as a "Riverfront Victorian with ghosts." 

Some of the interactions Ms. Ackley described to reporters included ghosts waking her each morning by shaking her bed.  When spring break arrived she loudly proclaimed to the spirits that she did not have to wake up early anymore.  On this, she insisted that they listened to her requests and the bed immediately ceased all shaking.  

Despite the local notoriety, an unknowing buyer, Jeffrey Stambovsky signed a contract to purchase the home. On an agreed upon price of $650,000 he made a $32,500 down payment.  Since Mr. Stambovsky was not from the area he claimed to have ignorance of the widely known haunting tales. 

When the buyer subsequently learned of the haunting stories, he filed for a request of the rescission of his contract for the sale and also sued for damages citing fraudulent misrepresentation on the part of Ackley as well as the Realtor®. 

In ruling on this case, the court stated that since the existence of ghosts in the home had been widely reported, as a matter of law, the house was haunted

However, the court dismissed the fraudulent misrepresentation action and stated that the Realtor® had been under no obligation to disclose the haunting to any potential buyers. The court affirmed that the law of caveat emptor (let the buyer beware) applied in this case so the buyer did not prevail. 

Mr. Stambovsky subsequently appealed the case and won a reversal. 

On appeal, the court stated that a "haunting" was not a condition that a buyer could fairly be able to ascertain  through even the most thorough of home inspections.  In this case, "the most meticulous inspection would not reveal the presence of poltergeists at the premises or unearth the property's ghoulish reputation in the community."

It further stated that the seller had taken unfair advantage of the buyer's ignorance.  Since she had taken it upon herself to inform the community at large of numerous spirits roaming rampantly throughout the home, she owed no less to her perspective buyer. 

The judge then rendered a somewhat entertaining opinion using the following phrases:  

"In his pursuit of a legal remedy for fraudulent misrepresentation against the seller, plaintiff hasn't a ghost of a chance," I am moved by the spirit of equity," "In this instance - who you gonna call?" and "The notion that a haunting is a condition which can and should be ascertained upon inspection of the premises is a hobgoblin which should be exorcised from the body of legal precedent and quietly laid to rest." 

I have no knowledge of whether or not the parties in question had any appreciation of the judge's sense of humor. 

However, Mr. Stambovsky was finally let out of the deal and had his deposit fully refunded. 

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10 Commandments Home Buyers Must Follow

Here are very useful tips for Home Buyers by Dr. Chantal Saucier in Lafayette, LA.  This info forwarded by the Hampton Roads Real Estate Lady!

 

Via Dr. Chantal Saucier (Keller Williams Realty Acadiana):

10 commandments for home buyersThese 10 Commandments home buyers must follow may seem like common sense to many. Buyers, however, can sometimes forget with all the excitement surrounding the buying of their new home. In the past couple of weeks, I have heard of two separate buyers who saw their home loan turned down, and their dream shattered, a few days before closing because they had bought furniture for their new home before it actually became their home. Both of them now have beautiful furniture with no home to put them in.

These two buyers were not my clients but it always hurts when I hear of transactions falling apart for reasons that could have been avoided. These 10 commandments are part of the buyer packet I give all my clients when we first meet and I always stress that once they get pre-approved and the process is started, they can't do anything that might affect their credit.

1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!

3. Thou shalt not use credit cards excessively or let your accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without first checking with your loan officer.

9. Thou shalt not change bank accounts.

10. Thou shalt not co-sign a loan for anyone.

If you are in the process of buying a home, remember that your credit must not change or be affected in any way until you actually sign the paperwork and get possession of your new home. Lenders will not only look into your credit when you first get pre-approved, they will check it again (and sometimes again and again) before they let you sign the mortgage. If you want to buy new furniture for your home or change jobs, just be patient. There will always be time to do it after the closing.

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