When Purchasing a Home - Wait
June 28, 2012
You have found a home to purchase. You have written an offer and the Seller accepted it. You have received loan approval and the lender is ready to draw the loan docs. You know that you will need some window coverings or a bed or a new sofa or a washer and dryer.
You read all the great ads that offer 15 - 20 or 25% savings if you take out their credit card and purchase now.
OOPS!
The lender will be doing a "date-down" just before closing and will see that you have changed your debt ratio. It may create an ugly situation. You could be bumbed to a higher debt to income ratio and the lender will no longer approve you for a loan.
Does this sound impossible. It is not.
The good news is that waiting to make major purchases until after you have bought the home ensures that you can avoid this road block. As real estate agents we can not stress enough the importance of putting off any other major purchases while you are in the process of purchasing a home. Even if you do not use credit to make a purchase and use cash for a major purchase it could be possible that when the lender checks your "funds available" you could no longer have the required amount of cash reserves.
Again - DO NOT MAKE MAJOR PURCHASES WHILE YOU ARE IN THE PROCESS OF PURCHASING A HOME.
You have found a home to purchase. You have written an offer and the Seller accepted it. You have received loan approval and the lender is ready to draw the loan docs. You know that you will need some window coverings or a bed or a new sofa or a washer and dryer.
You read all the great ads that offer 15 - 20 or 25% savings if you take out their credit card and purchase now.
OOPS!
The lender will be doing a "date-down" just before closing and will see that you have changed your debt ratio. It may create an ugly situation. You could be bumbed to a higher debt to income ratio and the lender will no longer approve you for a loan.
Does this sound impossible. It is not.
The good news is that waiting to make major purchases until after you have bought the home ensures that you can avoid this road block. As real estate agents we can not stress enough the importance of putting off any other major purchases while you are in the process of purchasing a home. Even if you do not use credit to make a purchase and use cash for a major purchase it could be possible that when the lender checks your "funds available" you could no longer have the required amount of cash reserves.
Again - DO NOT MAKE MAJOR PURCHASES WHILE YOU ARE IN THE PROCESS OF PURCHASING A HOME.
posted by shirley harry at 8:47 AM
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