Mortgage tip: If you are about to get into the loan process to buy or refinance a house – don’t go out and buy things on credit.
It sounds simple, and you would think most people would know this without being told.
…but, I have a loan right now where a borrower got himself into trouble from doing just this very thing.
There are three possible complications:
1) You have to explain the inquiries on your credit.
2) It will raise your debt to income ratio if you take on additional credit.
3) If you finance an amount over 50% of the available credit it could negatively affect your credit score.
So, while you are in the loan process – don’t apply for anything that would involve credit. (appliances, lawn equipment, etc.)
That’s it for today.
Thanks for reading!
Brett
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