Don't go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost you about $10,000 in home eligibility. For example, a car payment of $300/month could mean that you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.
In Summary, wait till after you have made settlement to make any credit purchases if you need to. My personal opinion though, try to NEVER make credit purchases. Save your money and pay cash if you can.
Pocono Mountain Lakes Realty
Rick Cordisco - Owner / Realtor
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Good point Rick. Not everyone considers how using their eligible credit affects their mortgage ceilings.
A good caution at an intial buyer consultation...the new car, all the furniture for the new house....etc., etc. can wait....or the house may never happen.