Thanksgiving is approaching and that means Black Friday will be nipping at its coattails, vying for your attention—and your dollars. It’s easy to get caught up in the flashy deals—and many of them are worth getting up at 2 a.m. for—but if you’re in the market for a new home, please read this article before you hit the holiday shopping circuit.
Don’t: Drain Your Bank Account
The Black Friday and Cyber Monday deals may be calling your name, but if you’re buying a new home, you’ll want to postpone major purchases until after you’ve closed. You may have been preapproved for a mortgage, but that doesn’t mean you’ll stay approved until closing. How you handle your finances matters. Keeping money in your savings account as a cash reserve can set you up to look like less of a risk to lenders. Credit cards are no better. Increasing your debt ratio can also affect your credit score.
Do: Go on the Hunt for Small Appliances
While large purchases are ill advised during your mortgage loan process, if you can afford smaller appliances that don’t have a huge impact on your wallet, go for it! Black Friday can be a great time to pick up blenders, toasters and other electrical wonders you’ll need in your new kitchen. Just don’t go overboard!
Don’t: Get Pulled Into Too Many Furniture Deals
Be especially wary of great furniture deals. Not only are these purchases a big hit to your bank account or credit card, but they may end up being a poor choice for your future space, especially if you haven’t found your dream home yet. Sofas in particular are notorious for looking much smaller in the showroom than in your living room. We recommend saving your money and splurging on furniture after you have the keys and can make the appropriate measurements.
Do: Go on Model Home Tours
Black Friday home tours? That’s right! You won’t have to get up at the crack of dawn to shop for a brand new home, but Black Friday is still a great time to avoid the crowds and scope out communities and floor plans in the areas where you may want to live.
Don’t: Open a New Credit Card
As any mortgage consultant will tell you, opening new accounts before or during your mortgage application process is not advised. Adding accounts can lower your average account age and lower your credit score. Not something you want during the loan process!
Do: Take Some Time To Relax with Friends and Family
Thanksgiving weekend is about being thankful for what you have and the people in your life. It’s so easy to get sucked into the shopping frenzy. If you do hit the stores, be sure to make a fun day of it with the friends and family the holiday was designed around.