Many first-time homebuyers are working hard to get under contract and close on a house so they can take advantage of the tax credit before the November 30 deadline.

As a consequence, many new buyers get too excited about that first home and end up making purchases such as new furniture and appliances before they close. This can be a costly mistake.

In fact, many real estate agents are busy reminding their clients of how important it to wait until the deal is complete before shopping. The main reason for this hesitance is that it is still possible for lenders to run last minute credit reports prior to closing. Some lenders may not be happy to see increases in debt or potential changes at that time.

In some cases, such reckless spending could lead to problems with the lender, especially if you barely qualified for mortgage financing in the first place.

Now, these kinds of measures have been used by lenders in the past, yet some are taking extra steps in the wake of the housing crisis. You should expect much more scrutiny than you would have only a few years ago. Even those with excellent credit scores may experience this.

Another area that might cause issues has to do shifting funds from one account to another. You should make any waves by giving lenders the appearance of spending, such as when you make transfers or withdrawals. This may prompt lenders to ask for records on the cash flow. In other words, you could be facing delays in your closing, or in rare instances, a total termination of the loan.

There remain many questions and concerns that have yet to be answered for first-time homebuyers. It does pay to be safe when it comes to something as important as buying your first home.

Similar Posts:

Share