Buyer Beware: Don’t Splurge Before Closing

In a recent WSJ article “Close First, Then Splurge” by Jonnelle Marte, it urges buyers who are in the process of purchasing a home to not change their financial picture that they gave when they first submitted their loan application with their lender. It is very important to not go out and make major purchases (such as new electronics, new furniture, etc) before you close on your home. Many lenders are now required to do a final credit check immediately preceding closing to verify that buyer’s financial obligations have not changed. The general rule of thumb is not to do anything drastic with your credit, loans, credit cards, other major debt, etc before closing. Following this rule of thumb will get you to the close table without a hitch and on your way to your new home!