Over the years, I’ve seen many buyers get so excited while under contract that they go out furniture shopping on credit before officially closing on the home. I have even seen some buy a new car!
What is the result? They end up with a new couch (and in some cases, a new car), but no new house.
The problem with buying items on credit before your property closes is that it could affect your debt-to-income ratio and your credit score, which could jeopardize your purchase.
Always check with your loan officer and/or your real estate agent before you buy something on credit before closing on your house. Even if you do not use credit to purchase an expensive appliance or piece of furniture, depleting your cash reserves could also affect your ability to purchase the home.
Close on your home first, and then buy the items you need to fill it up.
If you have any questions about this topic or you have any other real estate needs, please feel free to get in touch with me. My team and I would love to help you.