Holiday Do's and Don'ts

Do you plan on buying a house soon? Here are some things that could jeopardize your approval this holiday season!

Do’s

Ensure you are spending within your means!

Before you begin purchasing gifts for loved ones or friends, evaluate your financial status, and create a realistic budget. Decide how much you are comfortable spending overall and from that budget either divide evenly or figure out how much you want to spend on each person.

Look for competitive pricing!

If you are looking for a specific item, do your research! Cross-reference various stores for the best pricing and see if anywhere near you is willing to price match!

Call a Titan Lending Loan officer with any questions about purchases that may affect your credit!

Don'ts

Don't Open new lines of credit!

During the holiday seasons, a lot of retail stores try to entice buyers to open lines of credit with the promise of a 10-20% discount. Don’t do it! New Credit cards show up immediately on your credit report! This could cost you when underwriters are looking to approve your application!

Don't Take on additional long-term debt!

This means holding off on buying that new car or furniture! This additional financing on your statements will cause your debt-to-income ratio to increase. When your debt-to-income ratio reaches a certain point, underwriters may question your ability to afford the mortgage you are applying for.

Don't Fall behind on credit card payments!

We understand the urge to spend money on expensive gifts for others, but by neglecting payments you are lowering your credit score and putting your approval in jeopardy!

Don't Change financial institutions!

Lenders need to be able to originate and track your assets, this is made easier with consistency. By changing financial institutions, you won't be able to show a stable banking history.