The long process of getting a loan is over and everything is set for you to get a new place, the only thing left is to close on that future home of yours. What shouldn’t you do? Let me tell you what in today’s article.
We all know that before closing on a loan, one can be very excited and want to go crazy and buy big items such as bedding, new furniture…
There will be for sure very tempting offers in the market to satisfy those desires, but that can set you in a trap that can cost you the home. So don’t do it, just wait before you close.
Why? Because any meaningful movement in your credit cards will be noticed, especially when applying for a mortgage. So, be extra careful with any impulsive decisions that involve risking losing the home of your dreams. Once you have the keys in your hands and the house is officially yours, then feel free to fill it out with beautiful furniture and all kind of items you may want to buy.
When you are on the home-buying process, your credit is monitored till the day you close on a home, the fact that you’ve been pre-approved doesn’t mean you are done and you can start spending! You’re not done until the loan closes
If you really need some new furniture to fill your house, renting will be always a much better option than purchasing while you’re still waiting to close on a mortgage.There’s often no hard credit check and given that your store-bought furniture will likely take several weeks or months to be delivered, and it can be a more cost-effective option.
Switching jobs at the last minute could be an issue as well, as if you’re making money money with one company but then you switch to another one, that will for sure slow down the process because everything needs to be validated and they need to find out where everything is coming from.
It’s also important to let your lender know if you’re getting large deposits, such as gifts from family members or withdrawals from your IRA to help with the down payment.
So that’s all for today, hope you found this article useful so far and don’t hesitate in reaching me out if you have any questions or need a consultation.