One of the biggest mistakes home buyers make is they continue to apply for new credit when they are in the middle of a home purchase. One of regulations enacted in recent years is a lender must document a home buyer’s ability to insure responsible lending. So for lenders to comply with that requirement up through the closing date they utilize a service called credit monitoring. Every time you apply for new credit an inquiry appears on your credit report and the lender is notified.
In the next 24 – 72 hours you will get a call from your loan originator saying the lender sees you applied for new credit. You must supply the terms of the new credit such as the name of the creditor, account number, balance, and required monthly payment. Once you supply that information, the lender’s underwriter (the person who approves or denies your loan application) will recalculate your income and debts including the new debt to make sure you can still meet the repayment requirements of the new loan with the new credit account you just opened. Even if you still qualify for the loan applying for new credit while your home loan application is in process will cause delays.
What’s worse is the terms of the new credit cause you to fail the ability to repay test. In that case the $10,000 you just charged for new furniture for your new house just caused you to lose the funding to purchase the house. You never want to be in that position.
I get it you are excited and you want to be as efficient with your time as possible when it comes to your move. By the way this applies to all new credit, not just furniture. So if you are in the market for a new car; WAIT until after you have closed on the purchase of your new home.