“The Effect of Large Credit Card Charges”
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!
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
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.
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