Tips on home buying – limit your spending during a home purchase.
A reminder to all you prospective home buyers out there, if you are in the process of buying a house it WILL affect your purchasing power if you buy a car, get a new credit card, or do anything to alter your debt-to-income ratios. If possible, hold off on other expenditures till AFTER your purchase so you don’t get a surprise on your house financing during the transaction. Even if you must get a new car (and paid cash), be sure to be in touch with your lender to confirm its impact on your buying ability because lenders also have requirements for how much savings you must have in the bank to qualify.
I just had a buyer surprise me with the purchase of a new car while we’ve been in the hunt and had just put an offer in on a house. When I asked them if they’d told their lender, they seemed surprised that this would be necessary. Just because you’ve been approved for one big ticket item (a house) doesn’t mean that adding on another item (like a car) will bode well for the other purchase process. Buying a car can be a one day deal, but a house purchase takes longer and what you do during that period of time CAN and WILL affect it, if you’re not careful.