Buying a Home? Take It Easy on Credit Purchases…
March 6th, 2008 categories: For Buyers
If you are thinking about buying a home, or in the process of buying a new home, it would be intrinsically wise to chill out on major purchases – especially those using credit. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Think about this: Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage. Even if you have accumulated a generous savings, you might want to consider not making any large purchases until after closing. It would be an incredible travesty to learn that you can not afford your dream home because of a spending spree shortly before seeking mortgage approval. That new plasma television or over-stuffed suede couch may seem like a necessary purchase to furnish your new home, however the purpose is entirely defeated if, in the end, you do not get approval for the mortgage. Keep this at the front of your mind, as a television or furniture will always be available, but your dream home will not.
