Be Sure to Maintain Your Credit after You’re Approved

If you’ve been pre-approved to buy your dream home, and are waiting for the paperwork to go through, you may be thinking about some needs and wants to make your new home just right.

You could buy a big-screen TV to go into the family room. And maybe the kitchen remodeling should be done sooner rather than later. But with all the money you’ve put into purchasing your home, you may be strapped for cash.

Your credit is good enough to enable you to buy your new home, so would it really be a problem to purchase some of your needs and, OK, a few wants, before you go to closing? Unfortunately, the answer is yes.

Here’s why: Your lender will pull your credit on the day of closing. And if new credit lines show up on your credit report, your loan file will have to go back to underwriting to be re-approved.

If you barely qualified for the loan when you signed the papers, you could have pushed your ratios out of range, and you may not qualify now.

But can you make your purchases by applying for new credit after closing? Resist the urge. Credit pulls could potentially lower your credit scores, and because you may have access to more credit than you did before you started to look for a new home, that may also have an impact.

So before you buy, talk to your mortgage professional. That big-screen TV just may not be worth the risk.