Cedar Rapids Home Buyers Mistakes to Avoid!

Here is a question I recently received:

Q I'm applying for a mortgage and now my neighbor tells me I should not buy the car I've been considering.  Is that true?

A As a general rule, it is a good idea to avoid all major purchases before you close on a loan. Don't buy cars, appliances, furniture, or any big ticket item.  Don't lease a car. This is generally because a lender will pull your credit report before they make the loan.  Any major, new financial burden you incur can change your debt to income ratio.  If this happens you may no longer qualify for a Cedar Rapids home loan or the loan package will have to be changed to accommodate the new circumstances.
 By the way, be sure to make absolutely sure all your bills are paid on time before you close.  Unpaid bills can also change your profile with a lender since you become less credit worthy.

For all of your Cedar Rapids Real Estate needs give me a call.

Your Cedar Rapids Real Estate Agent for Life!
Rick Hernandez