Selling Reno And Sparks Real Estate Blog


Tis The Season: To Blow Up Your Home Purchase by Spending Too Much Money!

This is part of an ongoing series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”Financed Mortgages - Spending Money on Credit

My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.

Congratulations!  Your lender just approved you to purchase Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!

You go through the process of looking for a home, get a contract accepted and have your inspections and appraisal done.

AND THEN YOU GO OUT & buy a car or blow up your credit card buying furniture, appliances and Christmas gifts.

Houston – we have a problem!!  It doesn’t matter if you purchase these items with cash or credit.  You want to speak with your trusted mortgage professional who is working on your loan before you spend ANY money before a real estate transaction closes!

Here are the reasons:

  • Reserves:  you are required to have a certain amount of reserves for your home purchase.  If you spend those verified reserves BEFORE you close, you may no longer qualify for your mortgage.
  • Debt to Income Ratio:  If you purchase items with credit (car, appliances, furniture, an insane amount of Christmas gifts) you could hurt your debt to income ratio.  Again, you may no longer qualify for your mortgage.


The moral of the story is:  PLAY IT SAFE if you are purchasing a home during the holiday season and always speak to your lender before spending money!

Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®


copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Comment balloon 9 commentsRenée Donohue~Home Photography • November 11 2011 12:48PM


Renee - Excellent Post!!!  Now is definitely the time of year buyers can/will blow up their transaction.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) about 7 years ago

Great info to buyers, and more so for first time buyers.  This year I had clients "almost" get the closing delayed because of their purchase of a new fridge for the home they were buying.  Every dollar is scrutinized by the lender.  

Posted by Christine Bohn, The Bohn Team, Gainesville FL (RE/MAX Professionals) about 7 years ago

I actually had this happen to a client - buying a car and furniture for the new place - wow!  I had warned him, too...

Posted by Courtney Cooper, 206-850-8841 (Ben Kinney Brokerages Leadership at our Keller Williams North Seattle Office) about 7 years ago

Renee, buyer beware. Excellent warning because this is all too common.

Posted by Anja Kerstens, GRI, CDPE, CHS, ASP, Selling Silicon Valley Real (Coldwell Banker Residential Brokerage) about 7 years ago

How many times and how loud must we state, DO NOT MAKE ANY PURCHASES during the mortgage process that will effect your credit until the sale closes.

Posted by Florida Tolbert Team Keller Williams Advantage, Keller Williams Land Division Specialist (Keller Williams Advantage III Realty in Lake Nona) about 7 years ago

A very good reminder, especially during the holidays.  It's very easy to blow up a home purchase these days!

Posted by Justin Dibbs, REALTOR® - Ashburn Virginia Homes for Sale (Pearson Smith Realty) about 7 years ago

Thank you all for the comments!  I am sure we all have a REALLY good story or two or ten to share about these scenarios :-/

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) about 7 years ago


Excellent advice and I give my clients basic instructions not to buy anything of significance while the loan is being processed. Buy whatever after you close. Some folks do not like to listen!

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) about 7 years ago

Cross my fingers. I have not had any of my deals blow up because of this, but there is always a first time for everything. 


Posted by Cal Yoder, Homes For Sale in Lancaster PA - 717.413.0744 (Keller Williams Elite) about 7 years ago

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