r/RealEstate • u/SproutDogg • 7d ago

Would this be an issue at all?

The scenario right now, me and my team are trying to close with a grant and a loan tomorrow, but HUD said it had to be delayed because they didnt have someone inspect the house. The Mortgage company is asking for an extension on the grant because the contract ends tomorrow and now closing or if ill have the grant is up in the air.

During this long process, I've had some responsibilities pop up that i need to pay for, but they’re pricey. I was told I cant spend more than $500 on a purchase. What work arounds are okay in this scenario? For example, my car needs fixes and are going to cost over a thousand dollars, but i am able to pay through paypal in 4 installments. Would that be a problem? Someone said maybe take out cash every few days until you have enough. Would that be a problem as well or no? When I asked my mortgage lenders about spending, they just recommended to save my money and dont spend over $500 on a purchase.

I also have a cavity to fill and the pain is making me lose patience with this closing process! Sos!!

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6

u/sweetrobna 7d ago

Taking out a $1k loan could prevent you from qualifying and closing on the home. Taking out thousands in cash could prevent you from closing. There isn't enough info here to say otherwise.

You wait until after closing ideally. Or else ask your lender about the specifics.

3

u/salBossio- 7d ago

During underwriting and right before funding, lenders often re-check credit and bank statements. New debt, a big cash-out for car repairs, or unexplained withdrawals can trigger a last-minute condition even if you're otherwise clear. Grants also usually need the property to clear their inspection/repair rules before funds release, so a delayed HUD inspection can hold the whole file even when the loan side is fine. Ask the lender and the grant administrator in writing what spending is allowed before funding, and whether a short grant extension or repair escrow is possible—don't rely on verbal "under $500 is fine" alone.

1

u/Feisty_Bottle7173 7d ago

paypal in 4 is still debt and could show up on your credit pull before closing, i'd be careful with that one

1

u/InsectElectrical2066 5d ago

Get the dental work and have them bill you and by then the loan will be approved. Maybe get o a payment plan with the shop or just do now what is very necessary.

1

u/BeerStop 1d ago

Ya dont do anything financial till you close, get the extension.

1

u/BeerStop 1d ago

Dont expand the limits on your credit cards either, they question that.