Holiday Shopping

Holiday Shopping

How Holiday Shopping Can Kill a Closing


Everyone loves a good sale, but make sure you don't go crazy with holiday shopping — because it could jeopardize your ability to close on a home purchase. After you have received a preapproval on your home loan, you must be cautious with your finances. If you go overboard with your shopping in the meantime, you could even kill the loan approval entirely.

Don’t apply for new credit or accumulate new debt. It's tempting to apply for a new store credit card offering added discounts on top of sale prices, but just filling out an application could be risky for your credit profile. Opening a line of credit requires a credit inquiry, which could not only stall your mortgage loan application but also impact your debt-to-income ratio. It could make a lender believe you're a greater risk than you originally appeared. Home buyers need to avoid any major purchases, such as furniture or a car, before the home buying process is complete, says Tammi Robson, a mortgage broker at Metro Lenders in Denver.

Don’t transfer large amounts of money. Home buyers need to keep their money in one place as they await closing. Shuffling money between accounts can send red flags to lenders and make them concerned about undocumented funds or money troubles they may not have spotted beforehand.

Watch the gift money. If families are offering cash for holiday presents, buyers need to be aware that this may put their mortgage applications at risk. Lenders will be scrutinizing their accounts and looking for unusual deposits, such as those that are 50 percent or more of their monthly income. They are also looking for any unusual withdrawals. Buyers may need to be prepared to explain any large deposits or withdrawals.

Source: “Preapproved? Don’t Let Holiday Shopping Kill Your Home Purchase,” Forbes/Trulia (Nov. 24, 2015)

Tina Young Headshot
Phone: 254-338-0545
Dated: November 28th 2015
Views: 375
About Tina: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

5 Steps To Sell A House That Wont Sell - Lower the price. This is the mo
Start Your Day Right - Do you ever get a sinking feeling at
Stephens Top 5 Tips For Owning A Home By 30yrs Old - Getting too old to be renting??? Yea
Home Purchase After Foreclosure - Now, buyers have a “second chance

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

The Real Estate MarketPlace
716 Indian Trail, Ste. 130
Harker Heights, TX