What Is Considered A Big Purchase During Underwriting

Ah, underwriting. That magical process where the folks who hold the purse strings decide if you're worthy of that shiny new thing. It's a bit like a cosmic scorecard, really. And nestled within this grand evaluation are the dreaded "big purchases."

What exactly constitutes a big purchase? Is it buying a new set of tires for your trusty steed? Or is it spontaneously acquiring a life-sized cardboard cutout of a celebrity you admire? The lines can get blurry, folks.

Let's be honest, our definition of "big" and their definition of "big" might be as different as a chihuahua and a Great Dane. They're looking at the serious stuff. The stuff that makes their eyes widen a little.

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So, what makes something a big purchase in the eyes of the underwriter? It's generally anything that puts a noticeable dent in your bank account. Think of it as a financial sneeze. A really loud, echoing sneeze.

We’re not talking about your daily latte habit here, though if you're buying a lot of lattes, maybe they'll notice that too. We're talking about the headline-grabbing items. The show-stoppers.

Imagine you're applying for a loan. Maybe to buy a house, or a car, or perhaps a very large collection of artisanal cheeses. The underwriter is peeking into your financial life. They're like financial detectives.

And in their line of work, certain purchases just scream "red flag" or at least "mildly concerning yellow flag." It’s not that they think you’re a bad person. Far from it!

They just want to make sure you can, you know, afford the thing you’re borrowing money for. It's all about risk management. They're the guardians of their institution's money. And they take that job very, very seriously.

So, what are some of these infamous big purchases? Let's dive in, shall we? Prepare for some potentially unpopular opinions.

First up, the obvious one: major appliances. You know, the fridge that could double as a portal to Narnia, the washing machine that vibrates the entire house, or the dishwasher that’s so fancy it probably has its own Wi-Fi. Buying a whole suite of these bad boys at once? That's a purchase.

It’s not just one little blender. It’s the whole kitchen overhaul. If you suddenly drop a few thousand dollars on gleaming new kitchen gadgets, the underwriter might raise an eyebrow. They’re thinking, "Did this person just win the lottery, or are they about to be living on instant ramen for the next decade to pay for it?"

Then we have furniture. Not just a new lamp to replace your dusty old one. We're talking a whole living room set. The sofa that cost more than your first car. The dining table that can seat a small army. You’re redecorating your entire abode.

If you’re going from a beanbag chair to a full Chesterfield set, that’s a noticeable financial event. It’s a statement. A very expensive statement.

What about vehicles? Now, this one might seem obvious. But it’s not just about the type of vehicle. It's about the timing. If you're applying for a mortgage and suddenly buy a brand-new sports car in cash, well, that’s a conversation starter for the underwriter.

They’re going to wonder where all that cash came from. Was it savings? Was it a secret inheritance? Or was it, perhaps, funds that were earmarked for a down payment? It’s a puzzle for them.

And let’s not forget electronics. I’m not talking about a new phone to replace your cracked one. I’m talking about the giant, wall-mounted, 8K television that requires its own power grid. Or a top-of-the-line gaming PC that costs more than a used car.

These are the things that make underwriters pause. They see these purchases and think, "Hmm, interesting. Did they need this for their emotional well-being, or their financial stability?" The jury’s out on that one.

Now, here's where it gets a little more… unpopular. My personal opinion? Sometimes, even smaller, seemingly frivolous purchases can raise a little financial alarm bell. Like, if you suddenly start buying designer handbags with wild abandon.

We're talking about a collection that rivals that of a celebrity. Each one costing more than a decent vacation. While it’s your money, and you should enjoy it, a sudden splurge on luxury goods can make an underwriter twitch.

Or how about a fleet of scooters? Not one. But several. For your entire family. And your pet hamster. Because, why not? Suddenly you're a scooter magnate.

It's the pattern that sometimes catches their eye. A consistent, significant outflow of cash for things that aren't exactly necessities. They’re not judging your taste, but they are evaluating your financial discipline.

Let's talk about travel. A spontaneous, luxurious vacation can be a big purchase. We’re not talking about a weekend camping trip. We’re talking about a first-class, around-the-world extravaganza. All expenses paid. And then some.

If you’re living in a studio apartment but just booked a private island for a month, the underwriter is going to be curious. It’s a financial outlier. A beautiful, sun-drenched outlier, but an outlier nonetheless.

And what about those collectible items? Think rare art, antique furniture (beyond just a single stylish piece), or a vast collection of vintage comic books. If you suddenly liquidate your savings to acquire a priceless Picasso, that's a big purchase.

It’s not just about the dollar amount, either. It’s about the nature of the purchase. Is it an investment? Is it a passion? Or is it a sudden, impulsive decision that might impact your ability to repay a loan?

My personal, totally unsolicited opinion? Sometimes, even a really, really expensive pet can raise a brow. Not a goldfish. But a prize-winning poodle, or a pedigree Siamese cat that costs more than a down payment on a sensible used car. Especially if it comes with a lifetime supply of caviar and a personal masseuse.

It’s the idea that these big purchases, regardless of how much joy they bring you, can alter your financial landscape. They can reduce your liquid assets. They can change your debt-to-income ratio. And underwriters are all about those ratios.

They are essentially looking for stability. They want to see that you’re a reliable borrower. And a sudden, massive spending spree can make them a little nervous. They imagine you, surrounded by your newly acquired treasures, looking a bit stressed about your bills.

So, what’s the takeaway? It’s not about never buying nice things. It’s about being mindful of the timing and the impact on your overall financial health, especially when you're in the midst of applying for something significant.

If you’re planning a big purchase that involves dipping into savings that might be needed elsewhere, it’s probably a good idea to have a chat with your underwriter first. Or at least, be prepared to explain your sudden acquisition of a solid gold toilet.

Ultimately, these are the things that make an underwriter tilt their head and say, "Well, that’s interesting." They’re the financial equivalent of a flamboyant hat at a very serious conference. They stand out.

And while we might think our new gaming rig is a necessity for our mental well-being, the underwriter might see it as a potential distraction from our loan repayment responsibilities. It’s all about perspective, isn't it?

So, the next time you're eyeing that life-sized bronze statue of your favorite historical figure, just remember the underwriter. They might be watching. And they might just ask you about it.

Perhaps my unpopular opinion is that a truly epic collection of novelty socks, purchased over several months, should also warrant a special mention. But alas, the underwriters are rarely in the business of sock appreciation. Their focus is on the bigger, more financially impactful things.

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It’s a delicate dance, this underwriting process. And knowing what constitutes a "big purchase" is like knowing the secret handshake. You might not always agree with their definitions, but understanding them can help you navigate the path to your financial dreams a little smoother. Or at least, help you avoid explaining why you now own a small llama farm.