This is part of an ongoing series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”
My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.
Congratulations! Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!
You go through the process of looking for a home, get a contract accepted and have your inspections and appraisal done.
AND THEN YOU GO OUT & buy a car or blow up your credit card buying furniture, appliances and Christmas gifts.
Houston – we have a problem!! It doesn’t matter if you purchase these items with cash or credit. You want to speak with your trusted mortgage professional who is working on your loan before you spend ANY money before a real estate transaction closes!
Here are the reasons:
- Reserves: you are required to have a certain amount of reserves for your home purchase. If you spend those verified reserves BEFORE you close, you may no longer qualify for your mortgage.
- Debt to Income Ratio: If you purchase items with credit (car, appliances, furniture, an insane amount of Christmas gifts) you could hurt your debt to income ratio. Again, you may no longer qualify for your mortgage.
The moral of the story is: PLAY IT SAFE if you are purchasing a home during the holiday season and always speak to your lender before spending money!
Renee – Excellent advice! So many homebuyers are going to get themselves in tough situations during the holidays due to their spending.
My recent post There Are No Last Minute Changes in Short Sales
Tis the season to be careful if you are buying a home