Don’t Buy It With A Credit Card!
I know it is the holiday season and we are all out shopping until we drop – but it is most important for home buyers to be aware – Do Not Buy Large Ticket Items With A Credit Card While In Escrow! Buyers may not be aware that a lender is perfectly within their rights to request statements of credit cards right before the close of escrow. Lenders do this because they like to see that buyers have not gone nuts and used a ‘cash advance’ or bought a car before the close of escrow. Any large purchase may change the buyers debt to income ratio or DTI. Buyers must be below 50% DTI to get most loans.
As hard as it might be to wait until after the close of escrow to purchase furniture for your new house on a credit card or purchase a washer and dryer for your new house; WAIT!
Always check with your lender and ask them what is the best option when needing to purchase something while in escrow. A trusted lender is an important piece of your buying puzzle.
Good luck and best wishes for a smooth transaction.