Buying A Home? Don’t Buy Anything Before You Close
June 18th, 2010 categories: For Buyers
Excitement is in the air! You’ve just made an offer on a Honolulu home or condo and the offer was accepted! Dreams of sugarplums, furniture and paint are dancing in your head. You can’t wait to furnish and make this house your humble home, don’t let your enthusiasm blow the deal. The Los Angeles Times online recently reported that lenders are very wary of buyers buying incidentals on credit.
“The last-minute credit report will be designed to find out whether you’ve obtained — or even shopped for — new debt between the date of your loan application and the closing. If you’ve made applications for credit of any type — for furnishings and appliances for the new house, a car, landscaping, a home equity line, a new credit card — the closing could be put on hold pending additional research by the lender.
If you’ve taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the deal could fall through. The added debt load could render you ineligible for the mortgage because you suddenly appear unable to handle the payments without a strain on your household budget.”
CLICK HERE TO READ THE ENTIRE ARTICLE
Here’s the point. Hold your horses, slow down and don’t buy anything before the sale closes and you’re the owner of the property. If you lose discipline and buy that brand new leather sofa set with beautiful granite and glass coffee, then you could end up having to move the new furniture into your existing rental, because the lender could deny your home loan.
If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.
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