Be careful with your spending habits while in process of a mortgage loan.
Once a lender has pulled your initial credit report for the loan approval, a new credit report can be pulled at the lender’s discretion. The lender also requires the buyer to sign a liability statement, which certifies no additional debts have been opened since initial application.
What does this mean for the client? If you make any big purchases, your debt to income ratios could go out of compliance, as well as more credit inquiries and debt can pull a credit rating down, and jeopardize your loan approval. It’s best to make those big ticket purchases after your loan closing date.
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