When you go in and meet with your loan officer, he or she usually tells you not to take on any new credit while you are waiting to buy your new house. Most people understand that new credit can make you ineligible for your new loan.
So, when your loan officer and your real estate agent say "Don't apply for any new credit, don't use your credit cards anymore & keep everything the same until you close." We really mean it!!
When that urge is there to get some new furniture or that invitation comes in the mail to open a new credit card: STOP! DON'T DO IT!Unfortunately, I had a client who either didn't believe us or decided that the statement didn't pertain to him and he lost his ability to qualify for his loan less than a week before closing. Knowing it can be tough to resist, just remember that it will only be a matter of 30 - 60 days before you are in your new house. Believe me, it is much better to wait until you have closed than it is to lose all of the money that you put towards that purchase. You could potentially lose so much! Your earnest money, your inspection money, your appraisal fee, your option fee (if you are in Texas) and possibly more.
Just say NO!!
Remember, if you loan officer tells you that your loan approval is contingent on no new credit and your ratios cannot go any higher, believe him or her. If you really want that new home, listen and wait. You will be happier if you do!