What happens if I take on extra debt after being pre-approved?

What happens if I take on extra debt after being pre-approved?

Once you begin the mortgage pre-approval process, I will discourage you from applying for new credit cards, taking out additional loans, or financing large purchases – including those “buy now don’t pay for 2 years” offers as they all make an impact on your overall application qualification and/or your credit score.

What may seem like a small debt or manageable monthly payment to you, can actually have a big impact on your mortgage application. For example, if you take out a new car loan that carries a 0% interest rate with a monthly payment of $500 – this can actually decrease your purchase price by about $100,000!! AND today, that will make a big difference on the house you are now able to purchase, based on the car you that you’re now driving.

Getting educated early on in the mortgage pre-approval process is ideal and something I highly recommend! If you are thinking that you would like to purchase a home in the next year or two, lets chat now so you are better prepared as you go forward. You can either increase your savings plan or payout your debt faster by having a plan in place and a goal to work towards. Knowledge is power and we want you to take control of the wheel on the next leg of journey…

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