house keysGetting ready to buy that new house is so exciting, and you might already be decorating in your mind! However, when it comes to making those big purchases, you should hold off until everything is out of escrow.

Presenting a Strong Financial Background

The reason is because you need to present as strong a financial presence as possible. If you spend a ton of money buying new furniture and planning major landscape changes, you could undermine the whole approval process.

When the loan officer looks at your application, they will also be looking at several months of bank statements. Ideally, you’ll have a large amount of money in that account for as long as possible.

This will show them you have the financial support to handle the mortgage payment and know how to manage your money wisely. If you don’t have a large amount in the bank or consistently stay in the black, this gives them reason to potentially deny your application.

Planning Major Purchases around the Home

However, this does not mean that you can’t scout out great deals for your house decorations. This is especially helpful if you know when annual sales are coming up when you can take advantage of increased discounts. Then, you can plan out a furniture budget even before you need to spend the money.

It might be possible to siphon off a portion of your paycheck into a savings fund specifically for these purchases. This will still show as a smart use of your money because your savings account will be increasing during this time.

Once the house purchase process is complete, then you’ll have the money you need already set aside without dipping into your daily operating budget. When you plan ahead like this, buying a home becomes a much less stressful process and instead becomes something you enjoy. Hopefully, this will be a place you and your family can settle into for few years.

Tags: , , , ,

This is filed under Home Buying.


     Twitter It!