Don’t go on a spending
spree using credit if you are thinking about buying a home, or in the process
of buying a new home. Your mortgage pre-approval is subject to a final
evaluation of your financial situation.
Every $100 you pay per
month on a credit payment could cost you about $10,000 in home eligibility. For
example, a car payment of $300/month could mean that you qualify for $30,000
less in a mortgage.
Even if you have
accumulated enough savings, you should consider not making any large purchases
until after closing. The last thing you want is to know that you could have
purchased a new home had you curbed the urge to spend.