Hello. So my husband and I are purchasing our first home and are currently in Escrow with our closing date set for September 12th. We have gone out and bought some furniture and appliances for the house and our realtor has told us that this is a huge no-no and could affect us getting the loan. Our loan officer did not tell us this so we didn't find out until after the fact. The thing is, we've been saving for these particular purchases and have our payments scheduled to pay the balances we've accrued in full before closing. Do you think that we're still in hot water because we've made these purchases and paid them off?
@Anonymous wrote:I have always been told that you should never do this as well. I've read that people have bought all new furniture and appliances for their new home before closing and then lost the home because of it. They say to make no large purchases during closing/before you close. That being said, if you have the cash to cover the purchases and still pay your closing costs, perhaps they won't care? I don't understand exactly what your post meant - did you pay for the purchases on a credit card?
If you can still return the items and get your money back, I would consider that as an option as well. You will probably want to talk to your loan officer or contact to be certain you proceed the right way.
Good luck! I bet you can still figure out some way to fix this!
Yes, we put all the purchases on our credit cards. I will contact our loan officer tomorrow but yes, the payments have been scheduled for today to pay the purchases we've made in full. It just sucks that they do it like that. I've been reading up on it today and I feel like crap. I never wanted to put ourselves in this predicament. And no, we can't return unless we pay a restocking fee.
@kc0039 wrote:
@Tal wrote:
Hello. So my husband and I are purchasing our first home and are currently in Escrow with our closing date set for September 12th. We have gone out and bought some furniture and appliances for the house and our realtor has told us that this is a huge no-no and could affect us getting the loan. Our loan officer did not tell us this so we didn't find out until after the fact. The thing is, we've been saving for these particular purchases and have our payments scheduled to pay the balances we've accrued in full before closing. Do you think that we're still in hot water because we've made these purchases and paid them off?Once your loan officer pulls a credit update and it shows on your credit report showing a balance, we will do 2 things:
1. Add the monthly payment towards your debt-to-income ratio and if you still qualify, that would be the end of it and we won't even mention it
2.Add the monthly payment towards your debt-to-income ratio and if you don't qualify, we will call you and ask if you can pay those off, order a credit supplement to show that they've been paid off and ask you to provide documentation to show where the money came from. Ask your LO as to what kind of documents he needs.
** If you show that you're short funds to close after showing that you paid off the new debt, you will asked to show more assets or your loan will be denied.
What if the funds on the cards are paid off before they pull the credit update? Will they see that we have made the purchases?
@Anonymous wrote:Pay the balance of the credit card immediately before the new statement generates. If the balance is zero that's what will reflect in your credit reports. As long as the credit reports shows zero balance the loan officer won't no anything.
I did some research and from what I gathered, they'll do a soft pull anywhere from three days before to the day of closing. I was thinking of contacting my LO to discuss with her why she didn't mention anything and what the best approach would be, but I'm not sure if that is a smart move. The payments were both scheduled yesterday and should clear on tomorrow or Thursday. I'm hoping that what I found is true since we don't close until next Tuesday.