Buying furniture before closing is risky. Not only does it add hundreds of dollars to your monthly debt, it will also trigger a new credit check several months after closing. It’s also a good idea to have a budget in mind so you can make the payment without incurring additional debt. Unless you are invited to a housewarming party, your lender is unlikely to object to your purchases. However, you should ask your loan officer before buying furniture.
Buying new furniture is a natural part of moving into a new home. But many people get a rush to get new furniture. And they may think that they’re safe buying furniture until their mortgage loan closes. The truth is, though, that credit checks will still lower your credit score for a short period of time. Here are some ways to avoid buying furniture before closing. Buying furniture with cash is an acceptable option, but it can still cause problems.
Firstly, the biggest mistake most first-time homebuyers make is using their bank account to buy new furniture. Depending on your mortgage, you may be able to borrow money to buy new furniture. However, be sure to keep your credit score in check and avoid opening new accounts. This is because a new home can sour your credit score. It’s best to wait until after closing before making any big purchases. You’ll also want to consider the additional costs of homeownership before making any major purchases.