Karp Residential

Save Energy Costs with a Community Solar Project

Go Green Highland Park (GGHP) is a grassroots organization partnering with the city and neighbors to create a clean and healthy place to live, now and for future generations.  I’m really excited about their latest project:  Community Solar.  They are teaming up with Trajectory Energy Partners and Clearway Community Solar to bring renewable energy to everyone in the ComEd service area.   I just learned about this initiative and encourage everyone in Highland Park and Highwood to consider subscribing.

Community Solar offers a meaningful way for all Highland Park residents to support clean energy and help reduce dependence on fossil fuels in Illinois.  This is a great option for people who can’t put solar on their own homes or don’t want an upfront investment, live in a condo or are renters.  By subscribing to a community solar project, you’ll help support the development of new solar energy generation in Illinois.

How Does Community Solar Work?  You’ll be connected to a Community Solar Project in your service territory.  The solar energy produced by the project will go to the local power grid.  When you subscribe, you’ll offset a portion of your own electricity use with electricity generated by the community solar project.  Your subscription to your community solar project will allow you to receive credit on your electric bill for the energy produced by that project.  You pay for those credits separately, at a 20% discount, with no upfront investment.  Here are the highlights: 

• There is no upfront cost
• With local renewable power, you’ll save money on electricity every month.
• Community Solar is open to any ComEd customer: homeowners, condo owners and renters
• You’ll be helping to create jobs in Illinois
• Your subscription will help reduce Illinois’ dependence on fossil fuels 

Trajectory Energy Partners was founded by Highland Park resident Jon Carson.  The company has generously committed to making a $75 donation to Go Green Highland Park for every subscriber who signs up through GGHP, and then GGHP will donate 10% of that to the Community Foundation of Highland Park.isare scheduled for Thursday, August 20^th at 7:00 p.m.  Learn more and register here.  If those dates don’t work for you, the webinars are recorded and you can watch on the Go Green HP website.

Community Solar is a way we can all be part of sharing in the benefits of solar energy while lowering our energy costs.  We’ll be doing something positive right now to help tackle climate change and drive renewable energy in Illinois.   

This article was originally published in the August issue of Highland Park Neighbors.

Highland Park Market Update: COVID19 Impact vs. 2019

How has COVID 19 affected the real estate market in Highland Park?  Is it a good time to buy or sell?  Back in May, low inventory levels were keeping prices strong and sales were starting to pick up after a slump in February and March.  So what’s happening two months later?

I am very happy to report that the trends that were starting to emerge two months ago have continued!  As you can see on this chart, the number of homes coming on the market still trails behind the same time period in 2019.  At the same time, the number of homes under contract and closed exceeds the sales volume we saw in 2019, including a clear slump in April and May.

 

Highland Park – Detached Single Family Homes
Number of New Homes on the Market, Under Contract and Closed
2020 vs 2019:   January 1 – July 31

	New Listings			Under Contract			Closed
	2019	2020	Change	2019	2020	Change	2019	2020	Change
January	56	71	27%	21	25	19%	13	26	100%
March	108	72	-33%	30	41	37%	27	35	30%
April	125	33	-74%	39	25	-36%	40	42	5%
May	104	71	-32%	44	43	-2%	33	28	-15%
June	106	87	-18%	38	88	132%	36	43	19%
July	107	108	1%	40	77	93%	46	60	30%
Year to Date	698	539	-22.8%	252	347	37.7%	212	255	20.3%

 

But what about prices and home values?       

Many of my colleagues have a feeling that prices are on an upswing, but on this point, I am not quite as optimistic.  The average and median home prices in Highland Park 2019 versus 2020 are relatively flat so far.  I will continue to monitor this.  Keep in mind that in 2019 prices dropped in Highland Park from 2018, by at least 10%.  This may be another factor driving the hot Highland Park market, in addition to incredibly low interest rates.

The number of showings each week within Highland Park was rather dismal in from the middle of March to the middle of May.  Since then, showings have skyrocketed well above the weekly numbers we had in 2019, in spite of the pandemic and recent protests.

Staying Safe While Buying or Selling a Home

Realtors are now allowed to do open houses with new rules and limitations. 

For buyers, be prepared to wear mask, and possibly gloves. You may be asked to sign a COVID disclaimer prior to a showing or before entering an open house.  In some situations, sellers will request that you have a virtual showing (broker walks through the house while you are watching on your phone or computer) or watch a 3D tour before you can schedule an in-person appointment.

Other than actually looking at homes, all other aspects of home buying can be done virtually without any in person contact.

For sellers, I can’t emphasize enough that your first showing is online. We have seen a major increase in online home searches.  This is what I have been doing to market the properties I have for sale to help keep everyone safe.  These procedures and tools allow buyers to see “more” of the property before making an in-person appointment, and thus eliminate trips to homes up front that don’t meet their needs:

• Floor plans required for all properties
• 3D tour for most properties
• If a prospective buyer would like a live virtual tour of the property, we can accommodate that too. This allows them to ask questions live while I am walking through the property.
• Social media – I am regularly posting all of the properties on social media with videos or the 3D tours.
• If someone wants to see an occupied property in person, after they’ve seen the video, 3D tour and floor plans, then the sellers and I work together to make it happen in an environment that is safe for everyone (masks, gloves, hand sanitizer). The seller or I will turn on lights and open doors and cabinets to minimize touching any surfaces. 
• @properties provided all of their brokers with a CORONA VIRUS SHOWING DISCLAIMER form that each prospective buyer and their brokers must sign in order to see any property that is occupied. The disclaimer basically states that the signer is aware of the risks and that they are currently symptom free and haven’t knowingly had contact with anyone that is ill
• Of course if a property is vacant, then it can easily be shown.

I am collaborating and brain-storming with clients and colleagues to discuss real-time solutions for specific situations.  That enables all of us to adjust to the changing environment that we are working in right now with new best practices for marketing and showing properties.   The real estate industry has quickly pivoted to provide as many services as possible electronically to keep all participants safe.  This includes document signing, appraisals, mortgage applications, closings and much more.

Please reach out to me if you have any questions about the market.

Sell Your House, Not a Project

 

“We’re not looking for a project,” is common for real estate agents to hear from buyers these days, because most people are looking for “move-in condition” and “turnkey” homes.

Sure, there are some people that don’t mind taking on a few projects to customize their new home to their liking.  And there are people who seek out houses and condos in need of major renovations because they can get a good bargain and then invest their time and resources and resell the property for profit.

 

In the current local market, which is favoring buyers right now, properties that are in move-in condition sell faster and for a significantly higher price than those that require work.   For many buyers today the definition of a home that “needs work” is any home that has kitchen and/or bathrooms that are more than 15 years old.  These homes are considered “outdated” even though the overall condition of the home may be very good.  Other buyers, just want to avoid the homes that need more extensive renovations and repairs.

And, many younger buyers are willing to pay a premium for updated homes. They would rather put their money into travel and other experiences, instead of pouring money into renovations.  So updating your home before you sell it, can make a big difference in how long it will take to sell your home and what you will get for it.

So, what does this mean if you are thinking about selling your home and you know that it can use some updating, repairs, or more extensive renovation in order to get the highest sale price?  Many people don’t have the time and energy, or the funds to take on big projects before putting their home on the market – instead they want to focus on where they are going to move. 

You can just sell your house for less - there is always a flipper or DIY buyer that will give you an offer.  It may be much less than you imagine your house is worth and it may not be what you want out of the sale.

You can make improvements to bring your house up to date and sell if for a higher price, assuming you have the available cash or equity.  I suggest working with an experienced real estate professional to advise you on the renovations and upgrades that will provide the best ROI,

You can make minor improvements like painting in today’s colors and staging.  And virtual staging, which is done by inserting furniture and/or changing the color scheme in photos of the home, can help buyers visualize possibilities.

And, there is a new option available.  There are now companies, such as Curbio, that work with homeowners and realtors to do the repairs and renovations to significantly increase a home’s value, with payment for their services made at the closing of the sale.  This is a terrific and unique option for sellers who cannot or do not want to make the financial investment up front.

There is some good news in today’s residential real estate market.  Although prices have been flat or declining on the north shore, there are some things that will hopefully stabilize the market in the coming months. Interest rates continue to be at record lows.  With increasing rental prices, in many cases it is more expensive to rent than buy.  And, the Chicago area is VERY affordable compared to other large metropolitan areas in the country. 

Contact me for more info on the local market, to learn more about virtual staging, or to discuss the best options for getting your home ready to sell.

Finally, just a kindly reminder that Brian Jessen from Guaranteed Rate, and I, will be helping you and the environment with an upcoming community shredding event. We hope to meet many of you there.

Here are the shredding event details:

Sponsored by
 Nancy Karp, @properties
 Brian Jessen, Guaranteed Rate

When:  February 29^th

Where: 111 S. Pfingsten Road, Deerfield Rd
(We will be in front of the office building located south of Lake Cook on Pfingsten)

Time:  11 am – 1 pm (NOTE: different time than we published last month)

Documents will be collected and loaded onto a secure truck and then shredded at an off-site facility. Please bring your documents in banker’s boxes or another container such as paper or plastic bags. Documents in bags will be removed from the bags and placed into secure bins on the truck with other documents collected for shredding.

Thank you for reading.  This article also appears in Highland Park Neighbor's Magazine - February edition.

One Bag At A Time

(NOTE:  This article was also published in two local magazines this week Highland Park Neighbors and Winnetka Living.)

The planet is struggling and I’m going to save it!

Okay, that may be an overreach but I am trying to do my part and in this article help others do their part to relieve our planet of unneeded and harmful waste.

Highland Park is a relatively progressive, planet-friendly and social justice community. That’s one of the many things that I love about living here.

I’ve been bringing my own bags to local grocery stores for several years. And until recently when this became more of a trend, the checkers and baggers probably thought I was more than a little eccentric.

I tell my family and friends that I’m trying to save the planet one bag at a time, by skipping individual plastic bags for every type of produce (except fresh broccoli, that’s just one big mess!) and making sure the store baggers don’t use additional plastic bags on fresh meat and fish as they package up my groceries. The few plastic bags that do find their way to my house are returned to the recycle bins at stores like Jewel.

One’s efforts do not have to end with bags. There are several habits that I practice that anyone can incorporate into their lives that can contribute to saving our planet. If everyone changes their habits even in a small way, the impact can be amazing!

I’m devoting this article to several ways we as individuals can all do our part to make a difference in the health of our planet. Of course, our elected representatives and corporate leadership and stakeholders need to take steps as well. But, let’s start with what we can all do to improve our world.

Two easy things you can do to get started. 

First, let’s change your bag habits with some behavior modification. Reusable shopping bags are a great way to eliminate virtually all bag waste in your life, instantly. Keep them in your car and slap a Post-It note on your dash to remind you to bring them into the store. You’re still going to forget a whole bunch of times. But, you’ll start to remember and before you know it, you’ll pick up the habit. And if the Post-It doesn’t convince you, running back to the car after remembering at the last minute—hoping that your cart full of groceries doesn’t disappear—will train your brain to grab the reusable bags before you fill up that cart!

My other suggestion is not only an easy way to respect our environment, but also a great, safe way to clear out some storage space at home and protect your identity all at the same time!

Brian Jessen, Senior VP at Guaranteed Rate, and I will be hosting a community shredding event this coming February. We’re very excited!

Why is attending our shredding event a good thing?

Well, we all have a lot of paper piling up—tax docs, bank statements, bills, medical records, newspapers, magazines, brochures and endless junk mail. Aside from the environmentally responsible decision to not just toss all of that paper into landfills, shredding is one of the best protections against identity theft—how many of those old docs include account numbers and social security numbers?

And, all of it can be recycled into a variety of products, including office paper, greeting cards, cardboard, magazines and newspapers, paper towels and napkins, and toilet paper. That’s right, toilet paper! Wouldn’t it be nice to know your old mortgage statements and tax documents might become toilet paper? A fitting end, we can all agree.

Before you think, “I have a shredder in my office,” consider how long that may take to feed all of that paper into a household shredder that would likely burn out before you were done. And, before you think, “I can just throw it all in my fireplace or fire pit,” think again. Toxic fumes from colored paper and coated paper is not what you and your family should be anywhere near, and the nature of the materials can create hazards in chimneys.

Here are the details of our community shredding event:

Sponsored by
Nancy Karp, @properties
Brian Jessen, Guaranteed Rate

When: February 29^th, 2020
Where: 111 S. Pfingsten Road, Deerfield, IL 60062
(We will be in front of the office building located south of Lake Cook on Pfingsten)

Time: 1-3 pm

Refreshments will be served while the documents are collected and loaded onto a secure truck.  Then the documents will be shredded at an off-site facility. Please bring your documents in banker’s boxes or another container such as paper or plastic bags. Documents in bags will be removed from the bags and placed into secure bins on the truck with other documents collected for shredding.  

As always - thank you for reading.

5 Tips for Starting Your Home Search

In today’s market, low inventory dominates the conversation in many areas of the country. It can often be frustrating to be a first-time homebuyer if you aren’t prepared. Here are five tips from realtor.com’s article, “How to Find Your Dream Home—Without Losing Your Mind.”

1. Get Pre-Approved for a Mortgage Before You Start Your Search

One way to show you’re serious about buying your dream home is to get pre-qualified or pre-approved for a mortgage. Even if you’re in a market that is not as competitive, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach. This will help you avoid the disappointment of falling in love with a home well outside your price range.

2. Know the Difference Between Your ‘Must-Haves’ and ‘Would-Like-To-Haves’

Do you really need that farmhouse sink in the kitchen to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Before you start your search, list all the features of a home you would like. Qualify them as ‘must-haves’, ‘should-haves’, or ‘absolute-wish list’ items. This will help you stay focused on what’s most important.

3. Research and Choose a Neighborhood Where You Want to Live

Every neighborhood has unique charm. Before you commit to a home based solely on the house itself, take a test-drive of the area. Make sure it meets your needs for “amenities, commute, school district, etc. and then spend a weekend exploring before you commit.”

4. Pick a House Style You Love and Stick to It

Evaluate your family’s needs and settle on a style of home that will best serve those needs. Just because you’ve narrowed your search to a zip code doesn’t mean you need to tour every listing in that vicinity. An example from the article says, “if you have several younger kids and don’t want your bedroom on a different level, steer clear of Cape Cod–style homes, which typically feature two or more bedrooms on the upper level and the master on the main.”

5. Document Your Home Visits

Once you start touring homes, the features of each individual home will start to blur together. The article suggests keeping your camera handy and making notes on the listing sheet to document what you love and don’t love about each property you visit.

Bottom Line

In a high-paced, competitive environment, any advantage you can give yourself will help you on your path to buying your dream home.

Some Tips for Preparing Your Home for Fall/Winter Weather

As those fall leaves start accumulating, in addition to raking your lawn, it is also important to remove leaves and debris from your gutters.  Melting snow can collect in clogged gutters and then refreeze, creating an ice dam.  Ice dams cause water to pool under your shingles and then it can leak into your home causing extensive damage that often requires repairs to your roof and the water damage inside.

 

Verify that your sump pump is clean and draining properly.  Pedestal sump pumps can last 25 – 30 years, but a submersible one may last only 5 – 15 years.  We had a sump pump failure at our house this past spring.  Luckily we caught it quickly and minimized the water damage in our basement, but we still ended up with some unanticipated clean up expenses and general inconvenience. 

 

Any dead branches should be removed from your trees because these can easily be torn off of the trees in heavy wind conditions and cause damage to your home, nearby cars, or your neighbors’ home.  It is also a good idea to remove any tree limbs that hang over your roof, dead or alive.  This helps to prevent more leaves in your gutters and critters trying to get into your attic space.  If there are branches on or near any power lines or phone lines contact your local utility company for assistance.

 

Speaking of critters, in addition to keeping branches from hanging over your roof, there are a few other things you should do to keep birds and rodents outside. Seal small areas around doors, windows and crawl spaces.  The added benefit of sealing up any holes is that it could also reduce drafts in your home and save on heating costs.  Make sure there aren’t any holes in the screens on your attic vents.  Add a screen on your chimney cap. 

 

And thinking about chimneys...if you have a fireplace, you should get your chimney inspected and cleaned before your first fire of the season.

 

Lastly, check all of your smoke and CO2 detectors.  Some experts suggest that you do this every year when you change the clocks from daylights savings time. No special magic about doing it then, but it is a good way to remember to do this at least once a year.

 

Thanks for reading.

 

Reality vs. Reality TV

Going on Vacation this Summer? Here are the Top 4 things to do before you leave!

1. Have an emergency plan in place

If you have a house sitter or a pet sitter, be sure to leave contact information of your service professionals, insurance agent, as well as a vet for any pets you may be leaving in their care. If you do not have a house/pet sitter, make sure your neighbors are aware of the dates you will be gone. Should anything go wrong and you cannot be reached easily, your neighbor/house sitter can contact the appropriate person.

 

2. Automate your lighting to make it look like someone is home

Don’t be obvious by leaving your house pitch black. Instead, install some timers or smart bulbs to create the appearance that you are still home. With timers or smart-bulbs they can be set to stay off during the day while the sun is out, but switch on once the sun goes down. Also consider installing motion sensor lights outside your home.

 

3. Remember to unplug

People remember to plan a packing and to-do list, but often forget to unplug their electronics when they are leaving for vacation. Next time you have a planned vacation, include unplugging electronics as part of your to-do list. Not only should you unplug your electronics for safety, but you should also adjust your thermostat and turn of the main water supply to save money if you’re going to be travelling for extended periods of time.

 

4. Hold off on social media

While it’s exciting to show friends on social media where you are and what you are doing, you are also broadcasting to everyone on your newsfeed that you are not home. Enjoy your vacation even more by waiting until you return home

8 Tips for New Sellers

While many people like to give advice to first-time home buyers, first-time sellers need some coaching too. If this is your first time selling, you might feel a bit lost. Here are my top eight tips for sellers on the North Shore:

1. Plan ahead for the costs associated with selling your home.

There are two types of costs associated with selling your home. The first category of costs is closing-related. This includes title insurance, transfer taxes (depending on where you live), paying off your mortgage, and paying outstanding real estate taxes. I can provide you with an estimate of these costs so you can understand what you will net from your sale.

The other costs are related to getting your home ready to put it on the market.  These costs will depend on the overall condition of your home, and how much you can do yourself, or how much you will spend to have someone else do it.

Chances are you’ve done some work on your home during the time you’ve lived there. You’ve made it your own, whether that’s major renovations or painting. As you start the selling process, it’s important to remember that not everyone will love every part of your house the way you do.

The reality of the current market is that most of the buyers today shy away from projects, big and small. This means that the more you can do to make the home truly move-in ready the better. Here are examples of projects to consider:

• Create a neutral color palette (yes, repaint the burgundy or lavender room that you love and get a solid-color cover for your floral couch)
• Fix any doors that don’t close properly
• Make sure all the light bulbs and lamps are working
• Eliminate lingering pet odors
• Clean or replace stained carpeting
• Refinish hardwood flooring
• Replace anything that is near the end of its useful life (roof, HVAC, water heater, appliances)
• Fix or replace anything that is obviously broken

If you can’t afford to address all of the projects that apply to your home, or you don’t have the time, at least get cost estimates so we can share that info with prospective buyers.  If there’s something you know you won’t be able to fix, we will disclose that from the very beginning so that it doesn’t come up after the buyers have their inspection.

2. If you’re considering selling your home alone…think it through.

You might be the biggest fan of those home sale HGTV shows, but that doesn’t mean you know how to sell a home in the real world and in your local market. As with most things on TV, the way HGTV sells homes is different from “real life.” Your home is your biggest investment. Do you really want to gamble with it? You might be leaving money on the table or you could make some costly mistakes. Give me a call – I can guide you through the process and give you the information you need to make good decisions.

3. Selling a home is a business transaction.

Don’t be offended by anything people say about your home (including me). I need to tell you the truth about your home in order for us to work together to get it sold. The way you live in your home now, and the way you will need to set things up to sell it may be very different. This may be uncomfortable for you, but it is necessary in order to maximize what we can get for your home.

Showing your home can be stressful. We’ll develop a showing procedure for your home and you will be able to confirm all appointments. However, please understand that last-minute showing requests are very common, and we’ll want to accommodate them as much as possible. The easier it is for agents to show your home, the more often they’ll do so. Last-minute cancellations happen sometimes, too. It can be frustrating, but it’s just part of the process, so it’s best to be prepared. 

4. Clean, declutter, and clean again and again.

You must clean and declutter your home before you put it on the market. And, you need to figure out how to keep it that way. There are tons of articles on decluttering, so I am not going into details here. The bottom line is “less is more.” You need to minimize the amount of furniture and stuff on display – since you’re going to be moving anyhow, just start packing up all your stuff and store it (if you have a basement just stack the boxes neatly in your basement). And don’t forget to neaten up all of your closets!

Speaking of neatness, I can’t stress enough how important this is. Most buyers judge whether or not a house has been well-maintained by how neat and clean it is. There may not necessarily be a true correlation between these two things, but first impressions are critical. The cleaner the house is, the better it will appeal the potential buyers. 

5. Price it right up front (and don’t pay attention to the news).

I’ve written a lot about common pricing mistakes, so I won’t go into details here. Please keep in mind that while you might see a news story about home prices increasing in one particular area. Well, that doesn’t necessarily mean they’re increasing everywhere. Even within one area, there might be multiple market factors at work. For example, affordable homes might be selling quickly, but luxury homes are going slower. Or maybe condos are selling like hotcakes, but single-family homes are sitting on the market longer. I will help you understand what is going on in your market and what it means for your specific property.

6. Be smart about offers.

Once you’ve had some showings or a well-attended open house, you might start to get ahead of yourself and expect many offers. It may happen, it may not. Treat each offer seriously, and don’t assume there will be more. Don’t be “insulted” by a low-ball offer – remember this is a business transaction. Buyers may come in low to try to see how low you will go – I always thank buyer’s brokers for any offer and provide a response. Just because they come in low doesn’t mean we have to meet their offer. They took the time to write up the offer, and we can easily signal to them by our response that we aren’t going to go that low.

7. Be prepared for showings.

The first showing happens online, as your homes photos and listing details will be pushed out to hundreds of websites. Anyone with access to the internet can find out plenty of information about your home, from what it looks like from the street to property taxes. If people like what they see online then they will schedule an appointment to see it in person.

Have a plan in place for showings. What are you going to do with your pet(s)? Where are you going to put the private papers or bills that are usually on your desk? Where are you going to hide the laundry that you haven’t washed or put away yet? Where will you secure your valuables (jewelry?) so that they are out of sight? I usually recommend that my sellers have baskets or containers handy in their office and bathrooms that they can quickly put things into on days when showings are scheduled for a quick and easy showing prep.

8. Plan ahead for where you are going.

Below are some things to consider with regard to your actual move. Keep in mind that having two closings on the same day AND moving on that day can be incredibly stressful and I strongly advise against it (and I can help you develop a game plan for alternatives).

1. Are you planning to purchase another home, or are you going to rent?
2. Can you afford to buy your new home before your current home sells? If not, have you thought about those logistics? What if you sell your home and haven’t found a new place to purchase?
3. Have you considered renting for a while so you can take the time to find exactly the new home you’re looking for?
4. Are you considering new construction? If so, what is the timeline for the construction you’re hoping to purchase?

This might seem like a lot of information, but the bottom line is that you need to be prepared. These guidelines should help you navigate your first time selling. Please feel free to reach out to me if you have any questions. I would love to help you sell your North Shore home with the least amount of stress and for the highest possible price.

7 Things to Avoid after Applying for a Mortgage

Congratulations! You’ve found a home on the North Shore that you want to buy and have applied for a mortgage! You are undoubtedly excited about the opportunity to decorate your new home! But before you make any big purchases, move any money around, or make any big-time life changes, consult your loan officer. They will be able to tell you how your decision will impact your home loan.

 

Below is a list of 7 Things You Shouldn’t Do After Applying for a Mortgage! Some may seem obvious, but some may not!

 

1. Don’t change jobs or the way you are paid at your job! 

Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

 

2. Don’t deposit cash into your bank accounts. 

Lenders need to source your money and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

 

3. Don’t make any large purchases like a new car or new furniture for your new home. 

New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios… higher ratios make for riskier loans… and sometimes qualified borrowers no longer qualify.

 

4. Don’t co-sign other loans for anyone. 

When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payment against you.

 

5. Don’t change bank accounts. 

Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer money between accounts, talk to your loan officer.

 

6. Don’t apply for new credit. 

It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

 

7. Don’t close any credit accounts. 

Many clients have erroneously believed that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both those determinants of your score.

 

Bottom Line

Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process. If you need any additional help, feel free to reach out to me!