Dear Crofton Homebuyer,
The seller accepted your offer, your home inspection is complete, the appraisal has been ordered... now the fun of renovating and furnishing that home begins! But wait...
Don't go shopping yet for furniture, appliances, and contractors.
Right before closing, your lender is required to check your credit again. Any credit inquiries could lower your credit score and raise your interest rate. In other words, don't go window-shopping for new appliances, replacement windows, bathroom upgrades or new furniture because the vendor may do a routine credit inquiry to make sure you're qualified to buy their product or service. Even if you don't make the purchase or you use cash to pay for it, that credit inquiry could be enough to change your loan terms.
Needless to say this includes other major purchases such as a car... My suggestion: Don't even walk onto the lot of a car dealer until after closing.
If you're talking to contractors about having some work done after settlement, keep in mind that any contractor you hire to work there MUST be certified by the EPA for homes built before 1978. (Frankly, that describes most homes in the greater Crofton area.) Non-certified contractors are subject to a $32,000 fine for working on your home AND a future buyer may walk away from your home if they discover your updating was not performed by an EPA certified contractor.
Becoming certified is relatively easy for contractors: an 8-hour approved class, a $300 certification fee (good for 5 years), and a 2-page application. Any true professional will have this, so don't settle for less. The result of breathing lead-based paint dust could be permanent brain damage for you and/or your children - not something you want to risk.
From now until closing, expect your lender to ask for additional information
You ma
y feel there is some duplication with info provided previously, but please be patient. Today's lenders and underwriters are still learning their way through all the new regulations recently imposed on them, and they are drowning in paperwork. Rather than debate that you've already provided something, just copy and send any requested item again as soon as possible. It will help reduce the aggravation and get you to settlement on schedule.
I recommend you keep a copy of everything you provide to your lender in one folder. Then you will have all your mortgage paperwork in one place so it will be easy to find if you need it again.
If you have any questions between now and settlement, please feel free to give me a call or send me an email.
Yours agent,
Copyright 2006-12. All rights reserved.
DISCLAIMER: Information contained in this post is deemed reliable on the date of publication, but it is not guaranteed and it is subject to change without notice.
__________________________________
Margaret Woda, REALTOR and Associate Broker
Direct: (301)346-2923 or click on EMAIL
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Long & Foster Real Estate, Inc., 2191 Defense Hwy., Crofton, MD 21114 (410) 721-1500
Margaret: Good to point these things out to buyers. While we take this information for granted, we can never share it too much to our clients.
This is great info for buyers. By the way, I love your idea about meeting in Bowie to see off the Rolling Thunder riders. Let's definitely coordinate that next year.
Wise advise Margaret!
Buy the new furniture and all AFTER you close! And no new cars either!
Focus on the task at hand, buying the home!
Chris - I actually sent this letter to a recent buyer, without the graphics, and decided it should become a staple in my email library. Now that I've posted it on this blog, I can just send buyers the link after their contract is accepted.
Stacey-Ann - My daughter-in-law's father and step-mother participate in this, so I'll get the details from them next year. When she was growing up, they came all the way from Buffalo, New York, to participate.
Thom - 'Hope you're enjoying Montanna and seeing your family. Thanks for commenting on my post.
Margaret,
I love your buyer letter. You really explain what they need to know to make it to closing. Great job!
Margaret...Fantastic information !
Hannah
Margaret, I tell my buyers when we start the process to stay away from using their credit cards until after the closing. If they do need to use the card they should only charge what they can pay within the next billing cycle. Too many anxious buyers want to hit the ground running and end up losing the chance because they are no longer qualified.
Linda - I never felt the need to send anything specific to buyers at this point, but I sent this to new buyers the other day and decided it should be part of my email library.
Hanna - Thank you, I'm glad you like it. Are you coming to Raincamp DC? 'Hope to see you there!
Ed - That's true, and now we have the new policy where lenders are required to re-check credit before closing It's more important than ever that buyers NOT even let someone run their credit. One or two points could mean the difference, when it comes to credit scores and interest rates.
This is great advice. Especially now in a time where people are losing jobs at the drop of a hat. I have had situations where in these "in between periods" buyers have lost their jobs and the bank discovered this in their "pre closing" check.
Debra - That too! I met tonight with the folks for whom I first wrote this letter, and I don't think they really "got" it. I'd bet $100 the contractor who met us at the property to provide them an estimate does not have the EPA certification.
Margaret: What a great letter. I may even "borrow" it. I hear so many stories from other Realtors about some of the crazy things that happened after the sales contract was ratified, but before closing, that caused the sale to blow up. Again... very well-written letter.
Karen Anne - Well, thank you. Since you're a teacher, does that mean I get an "A"? Seriously, all three of these situations has become a big deal lately, and you are welcome to borrow the letter.
Margaret, the graphics make an impressive letter even better. It will also serve as a "sale-saver" by cutting off potential problems early-on. May I "borrow" as well to share with some local agents?
Of course, Mary Kay. Feel free. You can't tell from this graphic, but I took the trouble to create text on this file folder that are typical notes in a real estate loan processing, but shrinking the graphics makes it too small to read. LOL.