Massachusetts Sales Tax Holiday: Home Buyers, Please Wait Until After Your Closing To Splurge

by Rich Vetstein on August 14, 2010 · 2 comments

in Fannie Mae, Mortgages

I’m never one to rain on a good shopping day parade, but the Massachusetts sale tax holiday scheduled for this weekend, could cause some problems for home buyers who intend on makes big purchases over the weekend, but haven’t closed yet on their real estate transaction.

The reason is Fannie Mae’s new Loan Quality Initiative (LQI) rules which have resulted in lenders pulling last minute credit reports and additional verifications of borrower information. If you have racked up a big credit card bill before your closing, these last minute credit checks pull could result in a closing delay, pricing adjustment, or, worst, loan approval cancellation.

So, I hate to say it, but the best thing to do for home buyers is WAIT until after your closing to buy those new appliances at Sears.Your loan officer will thank you!

  • Hit this on one the head! Buyers beware & need not purchase until after the close of escrow! Great post and could not be any more true!

    • Thanks Eric! A few of our borrowers have run up against this issue. So now I say “No Home Depot until after closing”!!!!

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