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Credit Checks Before Closing: Why Buying a Car Could Cost You Your Las Vegas Home

Written by Kimberly Smith - Your trusted Las Vegas Real Estate Queen



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Did you know lenders often pull credit again before closing? Learn why financing a car during escrow could derail your Las Vegas home purchase and how to avoid it.

🏦 Yes, Lenders Check Again Before Closing

Many buyers believe that once they’re under contract, their mortgage approval is safe. The truth? Most lenders run a final credit check in the days before closing—sometimes 24–72 hours in advance.

This check may be a soft pull or through a credit monitoring service, but either way, any new debt will show up. If you finance a car, open a new credit card, or take on store financing during escrow, your lender will see it—right before giving final approval. And in some cases, that new debt can stop your closing altogether.

🚗 Why a New Car Loan Is Risky

Adding an auto loan in the middle of escrow affects your mortgage in three critical ways:

  1. Raises Your Debt-to-Income Ratio (DTI)

    • Lenders prefer a DTI under 36%, though some programs allow up to 43–50% with strong compensating factors.

    • A car payment of $400–$600/month could easily push you past the limit.

  2. Lowers Your Credit Score

    • Hard inquiries and new debt can temporarily lower your score.

    • Even a small dip can move you into a higher interest rate bracket.

  3. Signals Higher Risk

    • Lenders see new debt during escrow as instability.

    • That can trigger added conditions, delays, or even denial.

📉 Real Example: The “$500 = $50K” Estimate

Here’s a useful rule of thumb:

  • A $500 monthly car payment can reduce your home-buying power by tens of thousands of dollars—often around $40K–$50K depending on your income, loan type, and lender.

👉 In Las Vegas, that can mean the difference between qualifying for a single-family home in Summerlin versus a smaller condo.

Note: This is an estimate for illustration. Actual impact varies by borrower and lender.

⚠️ Common Mistakes Buyers Make

  • Furniture Financing – That new sectional for the living room? Wait until after closing.

  • Credit Card Splurges – Large balances can spike utilization rates.

  • “It’s Just a Lease” Thinking – Even leases add monthly debt.

Any of these can show up on your lender’s final credit review and jeopardize your approval.

👑 Kimberly’s Real Estate Queen Tip

Until your closing day, treat your finances like they’re frozen. No new credit cards. No new cars. No big balances.

Rule of Thumb: If you’re asking, “Will this affect my loan?”—it probably will.

📍 Why This Matters in Las Vegas

In the Las Vegas market, buyers often face multiple-offer situations. Sellers want buyers who look strong and stable from start to finish. If your loan falls apart because of a last-minute credit change, you don’t just lose the house—you could also lose your earnest money deposit.

✅ How to Protect Your Home Purchase

  1. Ask Before You Act – Talk to your lender before taking on any debt.

  2. Stay Transparent – Disclose emergencies or financial changes immediately.

  3. Keep it Clean – Maintain your credit and DTI until after you’ve signed closing papers.


👑 Kimberly Smith is a top Las Vegas Realtor known for her sharp market insight, strategic approach, and commitment to helping clients move smart—whether buying, selling, or just exploring what’s next. She’s not just a local expert—she’s The Real Estate Queen of Las Vegas.

📞 Connect with Kimberly:📍 Serving Greater Las Vegas | 🏡 Luxury + Residential

📲 702-706-5885

📱 Follow on Instagram: @realestatequeenoflasvegas


 
 
 

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