Step 15 to Buying a Home: Don't Spend Extra Money or Open New Lines of Credit

This may be the most important piece of advice we can give you: please read carefully and take note!

Don't spend extra money or open new lines of credit
until after closing.

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 was based on the amount of debt you had at the time (car payments, student loans, your current mortgage if you already own a home, etc.) including current open lines of credit. If you go out and buy a TV, a new car, new furniture, or make other large purchases between now and closing it could put your chances of being approved for your mortgage in jeopardy. Please note: YOUR LENDER WILL VERY LIKELY PULL 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 going forward, don’t open or close any credit cards, don’t take extravagant vacations, etc. "Normal" purchases are fine -- you can keep up your regular spending habits, such as grocery shopping, occasional nights out, etc. 

Often buyers think it won’t make a difference if they buy a couch, new TV, or other things for their new home and just charge it to their credit card, but it very well could put your loan in jeopardy.  So 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 before making the purchase.

Questions? Call us at 404-994-2181 or email Maura(at)BuySellLiveAtlanta(dot)com.