Home Buyers With Pending Contracts Should Be Careful With Spending During the Holidays

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Sure, it’s an exciting time of year and if you’re in the process of buying a home then it must be even more exciting to be planning for your new home. But there have been a lot of changes in lending practices during the past several years so you can never be too careful.

The reason for this is that in today’s lending environment, banks are extremely wary of whether or not borrowers can actually afford their loans. In light of the housing market crash and subsequent mortgage industry crisis over the past several years, it is important to keep as clear a financial profile as possible.

So once you have done all the paperwork for your loan process, the ratios are done, application is complete, bank statements are submitted and tax information provided – it is best to sit as tight as possible. Particularly for large purchases, be wary of how much your debt-to-income ratio stands to change with your taking on additional debt.

There are ways around it but it depends on your unique situation. We invite you to visit us for more insight on specific ways to manage your holiday spending. We have plenty of advice to give and a checklist that is very useful on how to manage spending during the purchase of a home.

Contact us today!