When they say not to make big purchases before closing, what do you think they mean?

Some loan officers will tell you, I have allowed some people to buy cars before mortgage and I have had others that i hoped like heck that they didn’t put $100 on their card.

Lets be real you are about to buy a home and you are almost in the homestretch for closing. Why mess it up?

During this period, you as the buyer will provide the needed funds for the home, hoping that the property is transferred and the sale is final. Which means that if everything goes right and all contingencies are met, both the seller and the buyer meet their contractual obligations and your financing to purchase the home is in place your dream to finally becoming a homeowner will soon be yours.

Is it worth the risk?

But even though closing day is just around the corner, you’re not out of the woods yet. There are several missteps a home buyer can take that will put getting a loan, and finalizing the transaction, at risk.

  • Changing Jobs – This can make lenders uneasy and can put everything on hold making lenders reevaluate the situation. Their major concern is that you have a steady consistent job. I highly suggest you stay put until all transactions are closed.
  • Going on a Shopping Spree – You’re about to get a new house, so why not go on a shopping spree and buy a new washer/dryer, dishwasher and refrigerator…or maybe, take out a loan for a new car? Because these are big purchases that show you are accepting more debt than you already have, this will throw off what’s called your “debt to income ratio” (which measures how much of your monthly income goes toward debt obligations), a ratio lenders consider when evaluating a loan application.
  • Paying Bills Late – If you are about to close on a home, please stay current with “ALL” of your bills. Changes made to your credit status could affect the likelihood of closing on your new home, so you want to keep your credit in good standing.
  • Opening/Closing Credit Cards – Opening new credit cards or closing old ones just before closing on your new home could negatively affect your credit status. So please beware!
  • Moving Large Sum of Money – The transfer of funds from you savings to checking and vice versa may raise red flags. Do your best to avoid any delays towards the closing process.