Holiday Shopping Tips for Homebuyer 

While we all want to shop for the holidays, it is important to consider what we purchase. When you are buying a home, your finances are evaluated throughout the entire process. Making the following holiday shopping mistakes could affect your ability to purchase a home. Please do not make these mistakes. 

If You’re Currently Under Contract 

First things first, if you are under contract, be careful with your spending. To ensure your home buying ability is secured, keep your finances under control during the mortgage process. 

  • DO NOT buy new furniture.

Don’t make large purchases while you are under contract. This will interfere with your DTI (Debt to Income) ratio. The money in your bank account is used to determine funds for closing, and will need to remain available to cover your closing costs.  

  • DO NOT max out your credit cards.

While it may be tempting to put purchases on your credit card and pay it later, you’ll want to ensure you’re not putting too much on your cards. Talk to your Loan Officer before making a decision to max out your credit card(s).* 

*Direct Mortgage Loans is not a credit repair company. This information is intended for educational purposes only.

  • DO NOT spend money you were saving for closing day.

On closing day, you’ll pay for the closing costs outlined in your closing disclosure. It is crucial to have this money prepared and accessible for closing day. While you are holiday shopping, do not dip into your closing day savings, as this money is mandatory to bring to the table. 

If You’re Buying a Home in the Next 3 Months

If you have intentions to purchase a home within the next 3 months, there are still things you need to keep in mind this holiday shopping season. 

  • DO NOT deplete your bank account.

We know this sounds obvious, but make sure to keep this in mind. Buying a home requires down payment funds, and funds for closing costs! Before depleting your savings, create a savings plan and budget.