Post # 1
Yesterday, my fiance and I went to sign the papers to make the formal loan applicaton for the house we are buying. YAY!
Everything went well and everything looks good, but at the end of the session, the loan officer told us not to make any big purchases because now that the financial institutions have our credit scores, account info, etc.
I don’t understand this.
We are getting married in 5 months and buying a house in, like, 1 month. We need furniture. I have to pay off my venues, make a $650 photography payment, etc.
How are we NOT supposed to make big purchases???
I emailed her for clarification but I am kinda worried.
Did anyone else experience this advice?
Post # 3
DO NOT, and I repeat: DO NOT go out and buy furniture. Wait until after closing. Anything you charge to your credit card goes against your debt to income ratio, which could seriously jeopardize your loan approval. You will also need paper trails and explanations for every purchase over, say, $200-ish (every bank has a different threshold, but that’s a good rule of thumb).
Just say no to furniture. You really need to be in the space to pick things out, anyway. Also, don’t buy a car, apply for an extra credit card, or do anything that requires a credit check.
Post # 4
+1 to crayfish’s advice. Also wait as long as possible on any big wedding purchases because to the lender approving your loan, they just see large purchases, not what they are or what they’re for. They want to make sure they’re your #1 priority for paying the loan back, especially after the economy crashed and lenders had to deal with so many foreclosures, so big payments on anything else during this time will make them more likely to reject your application.
Post # 5
Agreed. I got the same advice when I applied for my home loan.
Post # 6
@crayfish: This, exactly.
Post # 7
As the others have said, it is just a 1 month caution… until the Loan comes thru and the House Closes. You will just need to adjust your spending plans accordingly until then.
Great info from crayfish: … follow that to a tee !!
By The Way.. CONGRATULATIONS !!
Post # 8
@crayfish: Exactly. This is perfectly common advice and makes a lot of sense. Just wait until after closing. I assume you have some furniture, right? You don’t need to have everything purchased by closing day.
Post # 9
Thanks for all the advice, guys. But as my wedding is 6 months away, SEVERAL payments to several vendors are due in the next month or two. The biggest payment will be the photographer payment of $650 and I HAVE to mail that in THIS WEEK.
Ergh. I’m getting nervous!!!
Post # 10
@Stace126: Can you borrow that money from a parent with the promise to pay back the very minute you close on your house?
Post # 11
It is just until closing as you are only allowed a certain percentage of debt ratio you can risk losing approval on your mortgage if to do not have enough money in the bank or if your debt increases. Do you have someone who can pay your deposit for the photographer temporarily till the house closes ? Otherwise see if you can post date your payment and explain to your photographer your situation. And I agree do not buy furniture yet.
Post # 12
@Stace126: I’d be uber careful on paying anything that is “out of the ordinary” if I were you.
Last year, we sold our house….one day before closing, we found out that the buyer lost their loan because she forgot to mail in her utility payment. The underwriters didn’t approve her loan just due to a $20 bill!
If I were in your shoes, I’d have your mother mail the check to your photographer. You can reimburse Mom AFTER you’ve closed on the house. Is that something she would (or some other family member) would be willing to do for you?
Post # 13
@Stace126: i bought my house before all of the housing trouble a few years back, and even then they told me not to make any purchases over $100 before closing, and that was before lenders got super strict about their lending practices. now they’re much pickier than they used to be, so i’d find any way possible to put off any big payments or have family make the payments for you, as PP have mentioned
otherwise it might be better for you and your Fiance to wait until after the wedding to buy your home so that your finances will look more “stable” to the lenders
Post # 14
OMG I’m going to cry. I had no idea making wedding payments could ruin our home-buying process!!!
My parents have their own money problems, as my mom is on disability since she is on kidney dialysis. There is NO WAY they can make any kind of payment for us.
And I don’t have any other relatives who could either.
OMG what are we going to do?!?!?!?!
Post # 15
@Stace126: Call your photographer and explain the situation. I’m sure, if you explain things, s/he would understand your predicament– that you can pay a day after the closing.
If that doesn’t fly– you could talk to your loan officer too.
I think the last week before we closed on this house I was on the horn with my loan officer DAILY– because of constant questions from the underwriting group regarding our accounts. Maybe making that one $650 payment wouldn’t be a deal-breaker. ESP. if it is explained that it’s a one-time only payment or something….
Post # 16
We had the same advice and were in the same predicament as you. As PP’s said we had to show the paper trail and had to provide our marriage license and a wedding invitation to confirm all the “big” withdrawals and deposits were around and for the wedding. It was a serious hassle but it is doable. Don’t get discouraged, just try to only do what you have to, definitely wait on the furniture and anything else that you possibly can. For the stuff you can’t wait on just make sure you have copies of reciepts/contracts and checks etc to give to your loan officer. This is just part of the purchasing process now. It sucks but you can do it.. just try not to get to frustrated.