Robyn Seymour's Blog

No furniture shopping until the deal is closed

No furniture shopping until the deal is closed

You have prequalified for a loan. You found the house you wanted. The contract is signed and the closing is in 30 days. Don't celebrate by buying furniture or a car, if you plan to finance those purchases.
In this tight lending environment, lenders pull credit reports before the closing to make sure the borrower's financial situation has not changed since the loan was approved. Any new loans on your credit report can jeopardize the closing.
Buyers, especially first-timers, often learn this lesson the hard way.
They sign the contract and they want to go buy new furniture for the house or a new car. People make purchases or take out new loans that either add to their debt and change their credit score for the worse, sometimes resulting in losing the home because they knocked themselves out of their pre-qual.