Advice to Buyers: Spend Cautiously Before Closing

Homebuyers beware. Please do not throw your debt ratio out of whack before the close of escrow. Many deals fall through simply because of inopportune spending. A mortgage that you were previously approved of by a lender before closing can drastically change due to excessive debt. Lenders are pulling credit history and credit scores within a week of a buyer’s schedule closing date just to make sure nothing major has change. What the lender doesn’t want to see is a huge run-up of credit-card debt or other loans. Some lenders may require for you to sign a statement affirming that there has been no change in your finances and employment that will affect your ability to repay the loan back. Accumulating debt before closing can cause your credit score to change and the lender may longer be willing to lend money at the rate promised, or maybe not at all. My advice is to wait to do that shopping after closing.