First Time Home Buyers: Curb Your Expenses and Avoid Large Purchases

It is more common than you may think, accompanying the purchase of a new home often triggers the purchase of a car or another large purchase related to the home. This can feel quite natural as oftentimes a move to a larger property is due to a growing family or may require furnishings and/or naturally the investment into a pool or hot tub for the home. Now, ahead of closing your new home, this is actually not a good idea at all or recommended. The financial institution providing you your mortgage loan to pay for your home does not look at this favoriably. Adding this new debt can significantly impact your debt ratios which in turn can impact your ability to qualify for the mortgage.

Making any large purchases, if they have to be made, should be done after the closing of your property. Always speak to your mortgage representative before making any large purchases in and around the same time as purchasing your property.