Why You Should Not Make Any Major Credit Purchases
Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
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 enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
We were considering a home purchase in the Chautauqua Lake area and had a handful of homes that we wished to see. Richard had previously set up a search protocol for us. He arranged to meet with us on a Saturday (we are out of state) to review our search criteria and time line as well as visit the homes on our list. We were able to narrow our focus and will seriously pursue the search later this year with his assistance.Karen Weikart