If you have been working with a lender qualify for a home loan, you have most likely been told:
Don’t go on a spending spree using credit.
Don’t buy a car.
Don’t buy furniture for your new home on credit.
Don’t apply for credit cards or take advantage of store-credit offers.
Don’t spend money you don’t have and remember to pay all your bills on time!
Even if you have already been pre-approved for a loan, that approval is based on figures supplied at the time you started working with the lender. There has been many a disappointed home “buyer” (now renter) because the advice above was not followed. Don't be one of those unfortunate renters. Listen to your lender. Remember: your mortgage pre-approval is always subject to a final evaluation of your financial situation. And that can occur on the day before escrow closes!
Did you know that every $100 you pay per month on a credit payment reduces your purchasing power by about $10,000? A car payment of $300/month could mean that you will qualify for $30,000 less in a home loan! This occurs because your debt-to-income ratios change with each purchase you make. (And let’s not even think about the impact new credit can have on your credit score.)
The wise course of action is to put off new purchases and wait until escrow closes on your new home. Then…
Don’t go on a spending spree using credit.
Don’t buy a car.
Don’t buy furniture for your new home on credit.
Don’t apply for credit cards or take advantage of store-credit offers.
Don’t spend money you don’t have and remember to pay all your bills on time!
Even if you have already been pre-approved for a loan, that approval is based on figures supplied at the time you started working with the lender. There has been many a disappointed home “buyer” (now renter) because the advice above was not followed. Don't be one of those unfortunate renters. Listen to your lender. Remember: your mortgage pre-approval is always subject to a final evaluation of your financial situation. And that can occur on the day before escrow closes!
Did you know that every $100 you pay per month on a credit payment reduces your purchasing power by about $10,000? A car payment of $300/month could mean that you will qualify for $30,000 less in a home loan! This occurs because your debt-to-income ratios change with each purchase you make. (And let’s not even think about the impact new credit can have on your credit score.)
The wise course of action is to put off new purchases and wait until escrow closes on your new home. Then…
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