Once you are in the process of buying a home and your closing is coming up quick you may begin to realize that the furniture you currently have might not be anywhere near enough furniture for this new space. It's very common that home buyers will go out right away and start buying furniture prior to the closing. Of course you're excited to close! However, it is extremely important not to begin buying furniture until after closing because you can have your loan approval revoked. Making these large purchases effects your debt to income ratio, as well as your credit score, and your cash reserves. All of which are determining factors in determining your loan value. Once you've closed and your loan has closed as well you now have the green light to go out and purchase that new furniture! However, before you do here are a few tricks to help you stick with your home furnishing budget.
- Have a true budget. It's easy to walk into a store and lose all sense of self control. Before going out shopping you need to determine how much you can really afford. Be extra cautious if you are planning to use credit because if you can't afford your payment it will result in you suffering a lot more in the long run.
- Know how your space will function. Each piece of furniture that you buy should work into the flow of your space. Once you have the flow of your living areas figured out it will make it all that easier to know what to purchase while you're out looking, rather than buying pieces ahead of time that really don't fit into the whole picture.
- Keep an eye out for sales. Many stores will have regular sales, especially for big holidays such as President's Day or Memorial Day. You can also search for any "open box" furnishings. These will often be returned because of very minor problems that will likely occur if you were to buy something brand new. There's nothing better than getting a discount while you're on a budget. When in doubt you can always save money by checking local retail stores and thrift shops as well.