Posted On: Wednesday, May 30, 2012 - 5:20pm | Posted By: George Langford
Topics: Buyers and Sellers | Tags: first time home buyer, home buying, Home Financing, mortgage, san francisco, San Francisco Home Buying, SF Real Estate, zephyr real estate
You've been approved for a mortgage. Now you can submit an offer for that
home you have dreamed of forever! Better start picking out new
appliances for the kitchen and furniture for the house.
Not so fast!!
Here's where buyers can potentially hit a snag:
Applying for credit of any type for a new washer-dryer at Sears for the new
house, a new car, or a new credit card between the date of your loan
approval and closing could snag the deal.
That s because the new
lines of credit might be sizable enough to affect your debt-to-income
ratio. (The debt-to-income ratio is the percentage of your monthly gross
income used to pay your monthly debts, and is one of the tools that
lenders use to determine loan eligibility.) That additional debt might
push you over Fannie s debt ratio threshold of 45%.
simply, refrain from obtaining new credit and making big purchases
before closing. This includes no interest furniture financing,
increasing the debt on cards, or even paying off past debt. When it
comes to credit cards, loans and money. Leave everything exactly the way
it was when the lender originally gave the approval until close of
Escrow and keys are in your hands!