Don't make any big financial moves7 of 8Don't: Buy a big-ticket item or get another loan before closing on the refiAvoid making any major financial moves until after the refinance is closed."Sometimes people will go out and make a major purchase, like a car, in anticipation of the monthly savings they are going to reap from their refinance," Becker says. "Unfortunately, this can sometimes raise your debt-to-income ratio to a level that would cause you to be denied the loan."Less drastically, a big purchase "could lower your credit score to the point where you would have to pay more in fees or get a higher interest rate," Becker adds. "Wait until after the refinance is closed and funded to do anything that might change your credit profile." Related Articles:Eligible for mortgage help?Home Affordable Refinance quizWhen to refinance your mortgageCheck credit before refiRelated Links:Refinance interest savings calculatorCompare mortgage refinance ratesCalculate your net worthEstimate your credit score advertisement
Don't: Buy a big-ticket item or get another loan before closing on the refi
Avoid making any major financial moves until after the refinance is closed.
"Sometimes people will go out and make a major purchase, like a car, in anticipation of the monthly savings they are going to reap from their refinance," Becker says. "Unfortunately, this can sometimes raise your debt-to-income ratio to a level that would cause you to be denied the loan."
Less drastically, a big purchase "could lower your credit score to the point where you would have to pay more in fees or get a higher interest rate," Becker adds. "Wait until after the refinance is closed and funded to do anything that might change your credit profile."
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