If you are relying on a loan to purchase your next home, please do not make any big purchases until after you have closed on the home.
Your mortgage prequalification is granted to you based on the amount of money you had at the time of the prequalification in your savings accounts, checking accounts, retirement accounts, etc. and on the amount of debt you had at the time (car payments, student loans, your current mortgage if you already own a home, etc.). The lender will pull your credit one more time the day before closing. If this ratio changes, you could be marking yourself as a higher, unacceptable risk and potentially lose your mortgage. To prevent this from happening, take the following steps:
Avoid large purchases such as new home decor and appliances, flat screen TVs, cars, sports equipment, etc.
Pay all of your monthly bills on time and avoid late fees
Don’t open or close any credit cards or seek out any new loans
Don’t take any expensive vacations
If something comes up that may require you to make a significant purchase or payment that could impact your loan, please inform your mortgage lender as soon as possible.