Chris  Schmidt
Chris Schmidt
Owner/Broker

How Soon After Closing on a House Can You Use Your Credit Card?

How soon after closing on a house can you use your credit card? Managing your credit and spending habits is essential during the buying process. But what happens after the transaction is over?

In this post, Chris Schmidt and our Houston real estate experts at Your Home Sold Guaranteed Realty - Chris Schmidt Team will answer this frequently-asked home buyer question. 

Key Takeaways:

  • You can use your credit card immediately after closing on a house. Once your mortgage loan has been approved, there’s no longer any need to meet your lender’s financial requirements.
  • Even though you don’t have to worry about meeting your lender’s requirements, it’s still a good idea to watch your spending and be careful how much new debt you take on. 
  • It’s up to you to make sure you can afford your monthly mortgage payments and pay them on time. If for any reason you’re unable to do so, you’ll face whatever consequences you agreed to when you signed the mortgage contract with your lender.

How Soon After Closing on a House Can You Use Your Credit Card?

You can use your credit card immediately after closing on a house. Once your mortgage loan has been approved, you’ve transferred the funds to the seller, and the transaction has closed, there’s no longer any need to meet your lender’s financial requirements.

Your lender won’t be checking your credit score, spending habits, or other assets, since the loan has already been approved. At this point, you’re free to spend what you want and open new credit accounts.

Why Should You Watch Your Spending After Purchasing a Home?

Even though you don’t have to worry about meeting your lender’s requirements, it’s still a good idea to watch your spending and be careful how much new debt you take on. 

It’s up to you to make sure you can afford your monthly mortgage payments and pay them on time. If for any reason you’re unable to do so, you’ll face whatever consequences you agreed to when you signed the mortgage contract with your lender.

Common consequences for failing to pay your mortgage include:

  • Late Fees: Fees vary by lender but are usually a percentage of the missed payment. Accumulating late fees can quickly add up, creating a significant financial burden and making it harder to catch up on your payments.
  • Credit Score Damage: Lenders report missed payments to credit bureaus once they are 30 days late, which can significantly damage your credit score and ability to obtain future lines of credit.
  • Increased Interest: Some mortgage agreements include clauses that increase your interest rate after multiple missed payments.
  • Loss of Property through Foreclosure: If you miss three to six months’ worth of payments, the lender may initiate foreclosure proceedings. This legal process results in your eviction from the property, which then falls under the lender’s possession. 

To avoid these scenarios, it’s important to manage your finances responsibly. Create a budget for your home ownership expenses and stick to it. Plan for costs like regular maintenance, renovations, and property taxes.

Call or Text Chris Schmidt Today to Get Your Mortgage Loan Process Started!

Your Home Sold Guaranteed Realty - Chris Schmidt Team. How Soon After Closing on a House Can You Use Your Credit Card?
Chris Schmidt

Chris Schmidt is the owner of Your Home Sold Guaranteed Realty - Chris Schmidt Team. Chris has 20+ years of experience in real estate and is deeply familiar with the Houston housing market. He’s a member of the Houston Association of Realtors and has earned the Graduate, Realtor Institute designation from the National Association of Realtors.

He began his real estate career in 2004, when he joined Coldwell Banker United as a broker associate. He worked as a broker associate for over 10 years before deciding to begin his own real estate and mortgage lending team.

If you work with Chris Schmidt and the agents at Your Home Sold Guaranteed Realty - Chris Schmidt Team, you’ll have nothing to worry about on your home purchase or sale of your home. We’ve received numerous 5-star reviews from past clients who loved working with us. Clients value working with our team because we always take the time to understand their real estate goals and learn about what’s most important to them. Call or text 713-322-5604 today!

Faster

  • Get pre-approved in minutes
  • Closings on average in 20 days or less

Cheaper

  • 1% and 3% down options
  • Borrower Assistance Programs
  • Savings that average over $9,400 versus large banks and retail lenders

Easier

  • User-friendly technology allows you to track the status of your loan throughout the process

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!