This May Go without Saying but it does Need Repeating!
It is imperative that when you are in the process of obtaining a Plattsburgh home loan that you do not incur new debt. It is even better if you don’t even have your credit pulled at all as this could slightly lower credit. See the image below? (Screen shot of note on the bottom of an actual pre-approval) That is at the bottom of every single conditional approval that we receive.
There is a very good reason for this. When we qualify you we calculate your debt to income ratio (DTI-which will be explained in greater detail on a later post) and it is used to qualify you for a certain price of home you can afford. If you incur new debt you may not qualify for the property you are currently buying.
If you incur new debts that changes your DTI and with it the parameters of you mortgage. You may not qualify for the same interest rate pricing or fee structure anymore. This would mean that we may have to re-disclose which could cause delays and maybe even cause us to go over our contractual obligations. Remember folks when getting a Mortgage in Plattsburgh DO NOT INCUR ANY NEW DEBT!
Worse than that, depending on the amount of the new monthly debt, you may not even qualify for the loan anymore. We would hate to have to increase your rate or ultimately deny you for because of new debt that you may have incurred. So please do not take out any new loans, lines of credit, or anything else that may increase your DTI.
If you can help it don’t even have your credit pulled until after we close because if you do it will need to be explained. If you want to switch from one phone carrier to another please wait until after you have closed on your Plattsburgh mortgage to avoid having to explain that inquiry away.