“The Effect of Large Credit Card Charges”

   “The Effect of Large Credit Card Charges”

 

 

 

Hi Joe,

Hope all is well! We wanted to touch base with you to obtain some guidance. We have been planning on purchasing a new bed for before we get married and plan to spend around $2,000. Now that we have a pre-qualification, we want to be sure to make the right moves financially. Will this type of purchase affect the pre-qualification and should we wait until we can pay cash for the bed? Is it better to put the purchase on an existing credit card and make payments accordingly or could we open a new credit card from the place of purchase if there is a “no interest for x amount of time”

Thank you so much for all of your help!

Tricia

 

We give all clients very clear instructions about not making large charges on credit cards once a mortgage application is in process. When credit card debts increase, the monthly payment increases which can change debt ratios. If the ratios are already “tight”, even a slight increase can be a problem.

Fortunately for these folks they are wise enough to ask the question and in this case, this kind of charge literally has very little effect on their debt ratio.

The best advice if someone isn’t sure, always ask your mortgage professional.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 9 commentsJoe Petrowsky • April 06 2017 01:10PM
“The Effect of Large Credit Card Charges”
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