• Mar. 17, 2007 - Real Estate Strategies: Buying Strategy 2
2. DON’T BUY ANYTHING ON CREDIT!
Please check with your lender before you buy anything on credit or apply for ANY credit. In most cases you can buy the same car, furniture, vacation, etc. after you buy your home. BUT, if you buy it before the close of escrow you may significantly impact your ability to buy your new home.
At today’s interest rates, a new monthly debt of $70 could reduce your purchase price by $10,000. A new lease on a car for $350 per month could drop your buying power by $50,000. Depending on your price point, that could be a significant difference in the homes that are available for you.
Applying for credit other than your home loan could take you out of your desired price range or even completely eliminate your chances at a quality loan. Lenders look at how many credit checks you have had in the last 6 to 12 months. More than 2 and you could be in trouble. That includes cell phones and “no payment till anytime” deals. Refuse offers to increase existing credit lines. Pay off and close accounts with finance companies if possible-they are viewed negatively. Maintain at least one of your oldest cards to show a long credit history.
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• Apr. 23, 2007 - re: Real Estate Strategies: Buying Strategy 2