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.