As a financial coach, I hear many different stories from a lot of people. I hear stories, not only from my clients but, from people within my network.
Now, like any good financial coach should, I have a variety of real estate agents in my network who I converse with regularly.
Upon making a networking call the other day, I had a real estate agent tell me something that I had not been aware of, and, to make things stranger, I had another real estate agent tell me the same thing the next day.
Both resulted in clients not being able to close on their property. So, what was the cause of this issue?
In both cases, the new client was pre-approved to close on the property. Then, a new line of credit was opened by the client. This was done for an unknown reason. However, a new line of credit will not appear on your credit report for 30 days (on average), the clients did not think it would affect their ability to close if it was within 30 days. While a new line of credit won't appear on your report as complete on your soft pull, an inquiry will appear.
This can prevent you from closing on your home.
From us, at Coin Counselor, as well as two different very experienced realtors, it is not at all wise to open any new lines of credit between the pre-approval and the closing on a home.
Please do everything in your God-given power to avoid making this mistake.
If you avoid this mistake, you will be on your way to making your financial dreams come true!