Black Friday sales (all those great deals around Thanksgiving) can actually RUIN your seamless closing on your home.

Credit Usage Change Underwriting Approvals

Tis’ the time of year for blockbuster savings! Every year we have at least one closing that is stopped because a buyer got a “deal they couldn’t pass by” on an appliance or furniture for their new home on Black Friday or Cyber Monday. These deals are great, but not worth jeopardizing your loan.  Usually they come with strings attached to sign up for new store credit or to utilize a current store credit card.  Both activities impact the current credit report that is being used to approve you for the loan.  A couple years ago the Washington Post did a great article on why saving 15% on a $1,500 TV can actually cost you a lot more in the long run.

Wait Until You Have the Keys

Buyers who are getting a mortgage should never open new lines of credit in the time between applying for a mortgage and closing. Also, they shouldn’t make any big purchases on credit that could mess with their available credit. All of this will slow down the closing process and could potentially make them ineligible for the mortgage.  It is best to keep the plan in place and forgo the immediate win on shopping.  Once you move into the house with keys and title in hand, then you can look for some deals.

Black Friday Sales are Tempting

But the solution is simple. Remind yourself that you should not go shopping on Black Friday or Cyber Monday for big ticket items. By having this control you will be saving on your most important deal – your closing!