Navigating the Spring Market: Avoiding Costly Mistakes When Buying a Home
As the spring housing market heats up, many of you might be considering a move or purchasing your first home. One critical piece of advice I cannot stress enough is to avoid making significant purchases while waiting for your property to close.
You might be surprised to learn that for every $400 monthly payment you commit to—whether it’s for an ATV, boat, or a new car—it can reduce your mortgage pre-approval amount by up to $100,000. This is a crucial factor many overlook during the excitement of home buying.
Many people believe that once their mortgage approval is secured, they’re free to make additional large purchases. However, it’s important to remember that lenders can—and sometimes do—pull your credit again before closing. If they discover you’ve taken on more debt than when you initially applied, they have the authority to revoke your mortgage approval.
So, hold off on buying those big-ticket items like cars and recreational toys until after your home purchase is finalized. Rushing into such purchases before closing could jeopardize your chances of securing your new home. Play it safe, wait it out, and ensure that your move into homeownership is as smooth and secure as possible.