Can major spending before your refinancing hurt you in the long run? Absolutely. Major spending, whether that be new investments or sudden shopping sprees, can cause major fluctuation’s in your credit information, your income situation, as well as your dependability as a paying customer. Naturally, all three of those elements can make getting a loan more difficult, especially in our current loan market. But how does spending hurt your refinancing? It can be narrowed down to three main effects.


  1. Your credit score may fall – If you’ve maxed on several credit cards and have no plan to repay them in a timely manner, you can face major credit score penalties that hurt your potential for a good rate.
  2. Borrowing capacity may be limited – The amount banks are willing to lend may be much smaller than estimated or needed, causing future problems.
  3. Higher Rate – You may be hit with a much higher rate than your previous credit score may have entitled you, due to newfound financial risk or lack of dependability.


While all three of these elements can be avoided with smart spending and proper budgeting, here at Choice Mortgage Bank, Inc., we can ensure you the best rate regardless of your financial situation. Don’t let your money hold you back from a refinancing miracle. Schedule your consultation today, and we can get you started!

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