The agressive holiday push started by retailers before Thanksgiving and hasn't let up yet!  If you are trying to buy a home and have a preapproval, you want to keep a few things in mind as you prepare for the holidays! Retailers want you to spend and so keep an eye on your spending!

There is always a suggestion to open store credit cards when you are shopping, avoid that if at all possible.  Lenders will look for new inquiries right before closing on your new home and any new debt could affect your loan approval.  If there are inquiries, you will have to explain them and if there is new debt, we need to update everything. 

Remember you need to have money for your down payment, if you spend it all, you won't be able to buy a new home.  Set a budget for your holiday spending and try to keep it.  Make sure you have the money you need for a down payment – maybe keep it in a separate savings account so you can't get to it.

If you get money as a gift from someone over the holidays, keep a copy of the check so you can explain where the money came from.  If your lender sees large deposits, they will want to know where that money came from and if you have a copy of the check, it's much easier to explain!

Try to limit how much you put on your credit cards.  If your balances increase too much, it can affect your loan approval.  Along with new inquiries, lenders also look for increases in your credit.  So if you spend a lot over the holidays, it could increase your monthly payments on your credit cards and that may affect your loan approval.

I hope you have a wonderful holiday season and if you have any questions about your mortgage, please feel free to call or email!  Enjoy the season!

Leslie Vanderwerf,  NMLS ID#335509, American Mortgage & Equity Consultants – EmailWebsite

 

About Leslie Vanderwerf

Currently a Branch Manager for American Mortgage and Equity Consultants, Inc., it's hard to believe I have been in the mortgage business for more than 25 years and have worked with Sharlene since 2000! I love sharing mortgage insights here each week and helping people finance their homes. Listening helps me find the right program for you!

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