Step 12 – No Frivolous Spending

Step 12 to Buying Your Home – No Frivolous SpendingThis isn’t the best time to buy a new car, purchase new furniture, or take a vacation. These types of sudden spending can be red flags for your mortgage underwriter, or can cut into the funds you’ve set aside for your closing costs or down payment. Your preapproval was granted based on the funds you had in your accounts, the debt, income, and current major payments at the time of applying. If you suddenly add to the expenses, you risk the loan not being approved upon the final funding request. The mortgage underwriters will pull your credit one more time the day before closing. It is critical that you read and heed this advice because it can break your deal in the last moments.

Buyers often think they can charge it to a credit card, but it will show up in a credit pull before closing. If there is any question, what-so-ever that it may affect your funding, ask your mortgage broker BEFORE making the purchase.

For further questions or advice, please call us at 703.539.2053 or email us at [email protected]

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