Klarna and Affirm purchases can kill your mortgage approval

Thinking about buying a home? Be careful with buy-now-pay-later services like Klarna, Affirm, Afterpay, Etc. Even though these payments often don’t appear on your credit report, mortgage underwriters review bank statements and must count recurring payments toward your debt-to-income ratio. This can reduce how much home you can afford—or even get your loan denied—if it’s discovered late in the process. Always disclose these payments to your loan officer early and avoid opening new ones before applying for a mortgage!

If you’re thinking about buying a home or advising clients in today’s market, this is the strategy conversation that matters.

If you're buying, selling, refinancing, or advising clients, this update will help you make clear decisions without the noise.

Thinking about buying a home? Be careful with buy-now-pay-later services like Affirm or Klarna. Even though these payments often don’t appear on your credit report, mortgage underwriters review bank statements and must count recurring payments toward your debt-to-income ratio, which can lead to common first time home buyer mistakes. This can reduce buying power—or even cause a loan denial—if it’s discovered late in the mortgage process. Always disclose these payments early and avoid opening new ones before applying for a mortgage to protect your personal finance.