Before You Close – Don’t Open Any New Lines of Credit

As a mother chicken, you can’t count your chickens before they hatch because in most cases not all of them hatch. In the mortgage world, it’s kind of the same but goes like this “don’t open any new lines of credit before you actually close” We can’t tell how many times we’ve seen buyers who delay their closing or mess up their opportunity of obtaining purchasing a home by opening new lines of credit before they actually close on their homes.

Some buyers seem to get anxious and excited trying to get an early jump on fixing up their house when they have a planned closing date by opening up new lines of credit for furniture, appliances, curtains, lawn equipment and some have even bought new cars. This not only messes up their closing date but chances are it will cause them to miss out on getting that dream home right as they approach the finish line.

Opening new lines of credit will affect your debt to income ratio which basically will affect your financial outcome which tells the lender if you have too many debts…which ultimates say whether or not you can afford your new home. Word to the wise “Be Still“, Don’t open any new credit accounts. Pay for everything with cash, Don’t spend your down payment. And most importantly…Wait until After you close before getting that new furniture, appliances, etc. So it’s best to just wait before making these types of purchases. Even if you have an empty house with no furniture in it after closing it’s much better to wait and fill the house up after closing.

Hill Realty Group