Want to purchase all new furniture before you move into your new house? Maybe Mathis Brothers has zero percent financing on that new master bedroom suite so you can pay it off over time without any finance charges. Why not go ahead and purchase it before closing and have it delivered the day of closing?
WAIT! DON’T DO IT!
If you make a large purchase such as furniture on credit before closing on your new home, you may end up with no home to put your new furniture in!
Lenders will advise you to NOT make any major purchases from the time you apply for a home loan until the time you close. Lenders like to see a stable income stream and stable expenses. Racking up a line of credit prior to closing is a really good way to get your home loan canceled, or best case, delay closing while you explain your purchase to your lender.
So don’t do these things prior to closing unless instructed otherwise by your lender:
- Make any type of large purchase on credit
- Make any major cash purchase
- Take out any new loans
- Open any credit card accounts
- Open any lines of credit
Go ahead and shop for new furniture, pick it out if you like, but wait until after close to actually purchase anything.