There’s a common mistake we see clients make during their home buying journey. Buying a car between your pre-approval and closing can jeopardize your chances of getting your dream home.
It’s important to refrain from making any financial decisions that could affect your credit report after getting a pre-approval. Changes to your financial situation before your mortgage closes can cause your mortgage to be declined. Getting pre-approved for a mortgage does not mean that there is a guarantee that it will be funded. After the lender receives your application, you have to go underwriting, where the bank checks your finances to ensure that you can handle your mortgage payments. This means that doing things that negatively impact your finances (like financing a new car or making a large furniture purchase using your credit cards) should be avoided until after underwriting is complete.