BUYER'S GUIDE SERIES: DON’T SPEND A PENNY......without consulting us or your mortgage advisor!

Buying a home is an exciting journey, but it also comes with a lot of responsibility. One of the most important things to remember during the process is: don’t spend a penny without consulting us or your mortgage advisor first.

It’s tempting to make big or small purchases when you're in the midst of a home-buying process. However, making the wrong financial moves can jeopardize your mortgage approval.

Why Does It Matter?

Once you're pre-approved for a mortgage, your lender has already assessed your financial situation and determined your eligibility. But any significant changes—like a new car, booking an expensive vacation, or even paying down a large credit card balance—can affect your credit score or debt-to-income ratio, which in turn could put your approval at risk.

Even small purchases might make a difference. For example, buying a new car or maxing out your credit card could appear as new debt on your credit report. This could delay the closing process or worse—derail your loan entirely.

What Should You Avoid?

Here are a few things you should absolutely not do without getting advice first:

• No new car purchases or leases – Even if you're tempted to drive a new vehicle into your new home, it could increase your debt-to-income ratio and disrupt your mortgage application.
• No vacation splurges on the credit card – Taking a trip might be the last thing on your mind, but it could affect your finances when it’s time to close on your home.
• Don’t pay off large credit card bills right away – This may sound counterintuitive, but in some cases, paying off a big balance could impact your credit score. Always consult your mortgage advisor before making such decisions.

The Bottom Line

You’ve worked hard to get pre-approved, and the last thing you want is for a simple mistake to derail your home-buying dream. Before committing to any major financial decisions, always consult with your mortgage advisor and us. It’s better to be safe than sorry. With the right guidance, you can keep the process moving smoothly and avoid any unnecessary bumps along the way.

Stay smart, stay informed, and let us help you every step of the way in your home-buying journey.