The latest and greatest words from the goddess Fannie Mae, is that they suggest their lenders do a second credit check prior to closing- just in case. This is to see if Mary did some crazy furniture shopping…. and to see if there are any increased balances, new debt, inquires or changes in debt that would have altered the borrowers ability to pay the mortgage. If the credit or debt profile has changed in any way as to make the borrower unqualified, the loan may be rejected even if the lender issued a commitment letter or if they are ready to close tomorrow. Again, it is not over until the fat lady sings!

Ten things not to do right before the closing:

1.    Buy a car

2.    Charge a cruise for your entire extended family

3.    Go to IKEA and buy furniture for every room in the new home

4.    Apply for a Macy’s credit card

5.    Apply for financing for a new Lexus

6.    Get a Bloomingdale’s card

7.    Co-sign for your son’s new car

8.    Apply for student loans

9.    Apply for a zero percent credit card to consolidate all your high interest rate credit cards

10. Anything else

It has been common practice for lenders to check and make sure an applicant is still employed a day or two before the closing. Regrettable, the lender can find out that the borrower actually lost their job and the loan gets rejected at the eleventh hour. Yes, they did already issue a commitment letter, however they can renege on the loan even up to the hour of the closing.

Now, there are added steps to delay your closing and increase your fees. I am not saying they are wrong, I am just saying, play the game. Stay put, stay the same, don’t apply for new credit, bang up your cards or buy a big ticket items! Big Brother is now watching you just a little more closely! As they say, it is not over until the fat lady sings!