Under Contract? Hold Off on Purchases

One of the common mistakes that both first-time homebuyers and sesasoned real estate buyers can make is to throw a wrench into a loan approval prior to closing by making large purchases. Today most buyers will receive pre-approval before even making an offer but may not fully realize that it’s not until a loan is through underwriting that the final determination is made as to whether they will receive a loan. It’s happened too many times that anxious future homeowners want to furnish their home and will spend either cash or enter into a revolving credit scenario prior to closing. However, opening new lines of credit can affect credit scores and impact debt-to-income ratios. Even cash purchases reduce available assets and can impact a final approval for qualifications. It’s even be known for lenders to pull credit right up to closing, so hold off on any major purchases until recording happens and the keys pass over to your hands. This extends beyond just items for the new home of course and applies to any large ticket item. Always keep this in mind to ensure a smooth transaction all the way to closing.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.