I know you’re ready to start buying all the amazing home furnishings and decor items you’ve found on Pinterest. Or maybe you’ve been walking the aisles at Home Goods for inspiration.
Did you know that the lender will check your finances again right before closing? They will run your credit and verify employment, too.
Lenders are very cautious when lending their money. They must verify that your finances are still in good order before they give the clear to close to fund your loan.
When you were pre-approved the lender saw how much money you had in your various accounts, how much credit card debt and other consumer debt you carry, how many open and closed lines of credit you’ve had and so on and so forth. Then they calculated your debt-to-income ratio to verify that you could afford a house.
KEEPING YOUR DEBT-TO-INCOME RATIO THE SAME OR BETTER IS OF UTMOST IMPORTANCE. (Yes that requires all caps)
Buying a couch or a TV may not seem like a big deal, I mean you want a head start on furnishing your house, I get it.
But don’t. Just don’t.
If you do and it jeopardizes you’re ability to get a loan, you won’t be moving into your new home.
So PLEASE wait until after closing to go shopping at Pottery Barn or Best Buy.
Or the car lot.
Or co-signing for a friend or relative.
Or changing jobs.
Or quitting jobs.
Oh! And don’t open up any new lines of credit (even if you will save 10% on your purchase)
YES! This list can go on and on but you get my drift. Just hold on for the next 30-45 days, do not make any large purchases or change your financial standing in ANY way, and then after closing, knock yourself out! 🙂
If you are fairly certain purchasing an item will not affect your finances, I would still highly recommend reaching out to your lender. We certainly don’t want any bad surprises when we are just days away from closing
Here’s a quick video explaining this very important step to buying a home.