This important consumer alert comes from one of our preferred lenders, Mike Galatis of Fairway Mortgage.
Are you in the process of buying a home and looking to take advantage of Tax Free Holiday this weekend to purchase appliances and furniture for that new home? In theory this is a fabulous idea for most consumers, but for home buyers who have a loan in process, this could be detrimental.
Many people specifically plan their major purchases around the annual tax holiday. AND these are real savings when looking at purchasing a $1500 refrigerator or $2000 couch. With these big purchases usually comes store financing and additional inquiries on their credit report. Here are the top reasons why you need to check in with your lender before you go shopping so you both can be prepared.
- Credit is re-pulled 3 days prior to closing - any new inquiries need to be explained and verified
- Additional debt must get added to ratios
- If ratios exceed guidelines after the credit refresh their loan can be denied - even after commitment is issued
Bottom line - if you are in the process of buying a home and are looking to shop this weekend, check with your loan officer first - a quick call to check ratio's will put everyone's mind at ease.