Monday, March 21, 2016

How To Blow Up Your Deal

This will be an short post. I was involved in two back to back incidents last week of near deal-killing credit missteps by borrowers that prompted me to write this.

It's amazing how often otherwise intelligent people make stupid decisions that threaten to kill their property purchases. When a loan officer implores a borrower not to make big purchases, take on new loans or apply for new credit before closing, that borrower is well-advised to listen. The loan guy knows that any of those things can reverse a mortgage approval and it can happen just days before closing. I have seen buyers purchase furniture for a new house prior to closing and have that new debt kill their mortgage approval. One of the two deals from last week that I mentioned almost blew up because the buyer applied for a new credit card the week before closing. Leasing or purchasing a new car before closing is an almost certain deal killer for the average mortgage. If you plan on using a mortgage for a property purchase, keep your credit usage as close to zero as possible between the time you apply and closing. Once closed, have at it.

The brown tide algae bloom in the Banana River that began earlier this year has intensified and produced a massive fish kill this past week. Yesterday afternoon I watched the west wind pushing hundreds of dead fish up along the eastern shore of the river south of the Thousand Islands. The water looks like rusty chocolate milk and the stench of dead fish is gagging this morning. The City of Cocoa Beach has been making recent expensive and progressive moves to address water quality in the river and limit runoff, erosion and sewage leakage. I hope those actions aren't too late and that our neighboring communities along the river will do their parts and we can see the river return to its former beauty and health. Thankfully just across the street yesterday the Atlantic Ocean water was Caribbean blue, water temp in the mid 70s and head high sets were peeling in both directions to the delight of locals and visitors.

"All water has a perfect memory and is forever trying to get back to where it was." __Toni Morrison