Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE.” This week, we answer the question:
Why shouldn’t you make any large purchases before closing on a home?
Any major purchases (such as a new car, RV, or furniture) made after loan application, but before closing, can affect your debt-to-income ratio and cash-to-close reserves. Even if the purchase was “same as cash” or 0% financing, any changes to your debt-to-income ratio during the loan process can affect your qualifications, and possibly even disqualify you from the loan you originally qualified for.
Of course, life happens! You may run into a situation where you need to make a large purchase. In these cases, it’s important to discuss the purchase with your Mortgage Loan Originator to be certain that you’ll still be able to close on your home loan.
Everyone’s situation differs depending on your individual qualifications and mortgage needs, as well as loan program, so contact us today to get started on your home loan with our team of mortgage experts you can trust.
Thank you for tuning in to this Joe Knows Mortgages Minute. If you have any home loan related questions, we want to hear from you, so please comment down below! If you liked this video, please share this information with your family and friends. See you next time!