Step 12 - Don’t Spend Extra Money

February 2, 2024

Step 12 - Don’t Spend Extra Money

STOP! Now is NOT the Time to Spend Extra Money

Pay attention to this important information that will dictate whether the mortgage process will go smoothly for you or offer some bumps along the way. So, when you got pre-approved for your mortgage, it was based on your financial situation at that time - like the money in your savings, checking, and retirement accounts, as well as your existing debts like car payments and student loans.

Here's the thing: between now and your closing date, any big purchases like a new TV, car, or furniture could potentially impact your mortgage approval. The reason is that the lender will pull your credit one more time right before closing, and any new debt or changes in your financial situation could affect the approval.

So, it's super important to try and spend as little as possible until after closing. Also, make sure to pay all your bills on time, avoid opening or closing credit cards, and hold off on any big expenses or vacations.

I know it can be tempting to make those purchases, but it's best to wait until after closing. If you're unsure about how a potential purchase might affect your mortgage, it's a good idea to chat with your mortgage lender.

Once everything is finalized and you've closed on your new home, then you can go wild with the shopping! 

 


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