"With nearly a third of Americans still paying off last year's holiday spend, running up another big tab on charge cards this year will have a profound impact on a potential homeowner's short-term aspirations of buying a home," says Doug Perry, strategic financing advisor at Real Estate Bees.
Mike Riso, strategic real estate advisor at HouseCashin, states, "Using a credit card, and therefore adding to your debt, can negatively impact the terms of the deal, or your qualification status." He emphasizes that buyers should refrain from credit purchases completely to ensure loan qualification.
"If the bank sees you took on additional debt in that time, you might find yourself with a higher interest rate, a larger down payment, or worst of all, disqualified from the deal and you lose out on your house altogether," warns Riso.
Amber Brown, a real estate broker in Waco, TX, supports this guidance by urging buyers to prioritize paying down their debts over making new purchases during the home-buying process to avoid compromising their loan eligibility.
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