Buyer Step by Step November 20, 2018

Step 10: Don’t Spend Extra Money


Your mortgage pre-approval was granted to you based on the amount of money you had at the time of the pre-approval in your savings accounts, checking accounts, retirement accounts, etc., and the amount of debt you had at the time (car payments, student loans, your current mortgage if you already own a home, etc.).

If you go out and buy a TV, a new car, new furniture, etc., between now and closing, it could put your chances of being approved for your mortgage in jeopardy as THE LENDER PULLS YOUR CREDIT ONE MORE TIME THE DAY BEFORE CLOSING. Therefore, it is imperative that you spend as little money between now and your closing date as possible.

In addition, be sure to pay all of your monthly bills on time. Don’t open or close any credit cards or lines of credit, don’t take out new loans, don’t take extravagant vacations, and don’t pay off any debts. Often buyers think it won’t make a difference if they buy a couch, new TV, etc., and charge it to their credit card, but it very well could put your loan in jeopardy.

See Things Not to Do. Again, please do not buy ANYTHING big until after closing. Then go wild!

If in doubt as to whether a potential purchase will affect your ability to obtain a mortgage, please speak with your mortgage lender.