Don’t let Black Friday and Cyber Monday deals sabotage your clients’ homebuying plans. Let them know that some of their holiday spending choices could affect their ability to get their best mortgage rate—or even their mortgage approval status if they’re already under contract! Below are some dos and don’ts to help keep them on track.
Keep cash reserves healthy.
Having cash on hand is a good idea at any stage of a home search. It’s a buffer that can prevent late payment dings on a credit report. It’s the earnest money they can deposit the moment they find the perfect home. It’s also a reassuring sign for lenders that your clients are a lower risk, since they have resources to handle the unexpected. Bottom line: buyers should make a budget, stick to it and save major purchases for later.
Apply for new credit (or charge a lot on existing cards).
If your clients are applying for a mortgage soon, or if they’re already in that window between contract and closing day, it’s risky for them to make big changes to their credit levels. Adding new accounts can lower their average account age and utilizing more of their credit (new or existing) can change their debt-to-income ratio—both contributing factors to their credit score. No one wants to see a closing delayed or lost due to credit-related mortgage problems.
Stock up on smaller home necessities.
Feeling like the raincloud on your clients’ shopping parade? Remind them that there are plenty of ways they can take advantage of holiday deals without busting their budget. Smaller home goods like a new toaster, blender, lawn mower or linens might be smart buys that could help them maintain enthusiasm for the new household they’ll soon enjoy.
Make large furniture purchases.
Large furniture purchases, on the other hand, could affect your buyers’ finances and complicate their home search. Let them know it’s much easier to find the furniture that fits their space—and complements the many flooring, cabinet, paint and fixture choices they’ll make if you build a new home with us—rather than the other way around. Plus, anything they buy now, they’ll need to move later.
Most people don’t think of model homes as a prime Black Friday destination, but that’s what makes it such a great touring day. Invite them to walk off some of that turkey by touring a new community with you or make a virtual appointment if they’re not ready to leave the comfort of their couch yet.