Hold Off on Big Purchases: Protect Your Home Loan Approval

Published 06/22/2025 | Posted by Bob Allen

If you’re planning to buy a home—or are already under contract—now is not the time to make large purchases or rack up new debt. Your mortgage pre-approval is only the beginning; lenders will recheck your financial situation before closing, and any changes can impact your ability to qualify.

Credit Spending Can Cost You Thousands in Buying Power

A good rule of thumb: every $100 you add to your monthly debt payments can reduce your mortgage eligibility by about $10,000.For example, a new car payment of $300/month could cut your home loan approval by $30,000. That’s a major difference in what you can afford.

Even with Savings, Wait Until After Closing

Even if you have cash set aside, it’s best to avoid large purchases—furniture, appliances, vacations, etc.—until after your loan has closed. Big withdrawals or unexplained changes in your accounts can raise red flags with your lender and delay or derail your closing.

Bottom Line

Resist the urge to spend until the keys are in your hand. Protect your financial profile so nothing stands between you and your new home.

Tips For Buyers

Keep reading other bits of knowledge from our team.

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Hold Off on Big Purchases: Protect Your Home Loan Approval

Published 06/22/2025 | Posted by Bob Allen

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Hold Off on Big Purchases: Protect Your Home Loan Approval

Published 06/22/2025 | Posted by Bob Allen

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