Today, many lenders are pulling client's credit histories sometimes within just one week of a scheduled closing date to ensure that nothing has changed. Lenders do not want to see new client's running up a huge credit card debt or on other types of loans before the close of escrow.
Some lenders are requiring that borrowers sign a statement upon close of escrow which affirms that there has been no changes incurred in the borrower's ability to repay the loan that they have just been approved for - and that there have been no changes in the borrower's employment status as well.
Buyers of homes should be very careful not alter their personal debt to income ratio by going out on big shopping sprees for new furnishings and such prior to close of escrow. Borrowers need to realize that any additional debt could have an adverse affect on their personal credit score and that as a result of increased spending, the lender may alter the rate on their loan, or not make the loan at all.
Experts say that the best advice is simply to wait on these types of purchases until after closing has taken place.
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