Got Mortage? Don't Spend.

01.18.08 - 10:58am :: Tracey

So, you just put in a contract on a new home. The lender gave you a pre-approval letter and says he just got word from underwriting that you are good to go. Your closing is in 25 days. Your spouse wants new stainless steel appliances, some new furniture AND you need a new car. Stop right there – don’t spend any money on anything until after you close on that new home. Your lender got you qualified with your current debt and your current cash on hand. Any changes in those two things could throw your loan into the trash can. If the loan can be salvaged, the interest rate might go up.
It’s so nice to breathe easy once the approval comes in from the lender, and that’s fine. Breathe easy, but don’t buy anything. When my clients are insistent on spending money, I tell them to check with their lender before making any purchase over $500 prior to closing. It’s so tempting to buy those new appliances before the move, so they can be delivered on moving day. If your lender says OK, then you’re good to do that. But if he says to wait, wait. It’s not going to do you any good to have a bunch of new stuff for the house, and then find out you’re not able to get the house!
Mortgages are a little harder to get these days, so when you get approval for one, help yourself keep it by curbing your spending, at least until after the house is yours.