Don’t Apply for a New Credit Card!
Applying for a new credit card will affect your credit score and your debt-to-income ratio. Your credit score and debt-to-income affect your interest rate and loan amount. The home you want may be $140,000 and you’re hoping for an interest rate of 4.5%. However, due to your credit score and ratio, you may only qualify for $125,000 at 5.75%.
Don’t Buy a New Car!
This will also affect your credit score and debt-to-income ratio. Even if you’ve already been pre-approved for a mortgage loan, you will be affected. Before you go to closing on your new home, the lender will do another credit check. If you’ve purchased (or even leased) a new car, you will lose your pre-approval and won’t be able to buy the new home.
