We want to share a quick real estate tip today, especially for buyers:
Don’t make another big purchase when you’re buying a house.
Some buyers have found their home purchase in jeopardy because they couldn’t wait to buy that great $5,000 living room furniture set, or their child needed a new/used car to get to school.
Banks offer you a home loan based on their understanding of your financial picture — how much you earn, how much you normally spend, how much you have in savings, things like that. When you change those circumstances significantly by purchasing something big, the bank may decide you’re not as good of a borrower as they thought you were.
That’s why you really need to just hang on tight during that 30- to 45-day period when you’re under contract on your new home. Don’t make any major purchases until the day after your home closes and then you can spend to your heart’s content!
If you’re not sure what constitutes a “major” purchase, just ask your Realtor® and s/he’ll make sure to give you the proper guidance.