Step 18: Don't Spend Extra Money
This is VERY important. When your mortgage lender pre-approves you they are going off of the money that you have in your checking, savings, and retirement accounts etc. at that time of pre-approval. They also base it off the amount of debt you have at the time of pre-approval such as car payments, student loans, credit cards, current mortgage (if you already own a home) etc. If you are going out and purchasing items between now and closing, it could greatly affect your chances of being fully approved for your mortgage, especially since the lender pulls your credit one more time the day before closing.
With that being said, it is very important that you do not spend extra money between now and closing. This means buying anything from a new tv, furniture, car or really anything extra outside of your normal monthly spending. Spend as little money as possible between now and closing. Also, make sure you pay all of your monthly bills on time, do not open any new credit cards or close any present ones, as well as taking any lavish vacations. DO NOT plan to buy anything until after closing! Once everything is set in stone, then you may spend as you please. For the time being you do not want to do anything that could put your loan in jeopardy.
If you are unsure about whether or not a purchase will affect your loan, don’t hesitate to reach out to your mortgage lender. That’s also what they are there for!
Connect with the Pierce County Real Estate Team
- Step 01 - Hire a REALTOR
- Step 02 - Home Buyer's Checklist
- Step 03 - Get Preapproved for a Mortgage
- Step 04 - Prepare for Earnest Money Deposit
- Step 05 - Get Down Payment Ready
- Step 06 - Finding Your Dream Home
- Step 07 - Schedule a Time for Showings
- Step 08 - Make an Offer
- Step 09 - Review Seller's Disclosure
- Step 10 - I Have an Offer Accepted, Now What?
- Step 11 - Schedule the Home Inspection
- Step 12 - What is the Inspection Contingency Period?
- Step 13 - Schedule the Side Sewer Inspection
- Step 14 - Schedule the Septic Inspection
- Step 15 - Tips for Attending the Home Inspection
- Step 16 - Read the Inspection Report
- Step 17 - Review Supplementary Documents
- Step 18 - Don't Spend Extra Money
- Step 19 - Give Notice to Your Landlord
- Step 20 - Schedule the Closing Date on Your Calendar
- Step 21 - The Appraisal
- Step 22 - Hire Movers and Start Packing
- Step 23 - Hook Up Your Utilities
- Step 24 - Set Up Homeowner's Insurance
- Step 25 - Do You Want a Home Warranty?
- Step 26 - Secure Your New Home
- Step 27 - What is Clear to Close?
- Step 28 - Attend the Walk Through
- Step 29 - Wire Your Down Payment
- Step 30 - Attend Closing
- Step 31 - Wrapping Things Up
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