If You’re Buying A Home, Don’t Make Any Other Major Purchases

When you’re in one of the various phases of the homebuying process, your actions in other areas could determine if you’re successful or not. For example, other types of purchases may appear to be unrelated, but they could negatively affect your mortgage application. “Lenders will review several factors when evaluating a mortgage application, including your credit score, intended down payment, and debt-to-income (DTI) ratio,” says Ashley Moore, community lending manager at Chase Home Lending. And while an increase in your credit score or down payment will be viewed favorably, an increase in your DTI ratio might stop you from being approved.

Here’s what you need to know.