Do Not Buy Expensive Things Before Applying for Mortgage

It happens over and over. A person is getting ready to apply for a mortgage. They do their due diligence and get a very defined feel for what they will apply for. They many even get pre-approved. Everything is read to go and then the do something truly amazing. The go out and buy something expensive on credit! Okay, why is this a mistake? The problem lies in one of the calculations used by lenders to determine how much they will loan you. Specifically, the ration between your available credit and the credit you are using. By buying an expensive item on credit, you change this ratio for the worse and the mortgage lender may not give you the amount of money you need for your new home. Don't make this mistake!