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 your 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 home had you resisted spending.
Talk to a mortgage banker about the best plan for your financial situation. It may
be to your advantage to pay off some of your debt or to save for a down payment.
Each buyer’s financial situation is different. So plan ahead and seek good
advice from a reputable mortgage company.
