COCONUT GROVE'S THE CHERRY GROUP HAS SOME FINANCIAL ADVICE WHEN BUYING A HOME

If you are purchasing real estate, don't do anything to impose on your credit score before your lender issues a loan approval letter to you. Better yet, don't extend your credit until you own the home. Often the Bank or Mortgage Broker issues a Pre-Qualifying letter to you, indicating that based on very preliminary information you could get the loan. The letter means little to you and virtually nothing to the seller and seller's Realtor. The Cherry Group, as the Coconut Grove real estate experts, counsels its buyers thoroughy on good financial behavior during the often tenous contract period. Even if funds have been escrowed for the second deposit, lenders do repeated credit checking right up until the loan is approved and sometimes after. That means one shouldn't lease a car or buy furniture on credit, as an examples, where one's credit would be pulled and scores lowered. Also, most lenders require 6 months cash reserves to cover mortgage, taxes and insurance. Banks often check the day before closing to be assured the money is there.