Splurging Before Your Closing Could Be Hazardous For Your Loan

If you have bought a home but haven’t yet gone to closing, do yourself a big favor and resist the temptation to get a jump on replacing those old appliances by purchasing them before closing and charging them on your credit card. Why you may ask since you have already been approved for the mortgage and the closing has been scheduled to take place in a few days? The reason is Fannie Mae’s new Loan Quality Initiative (LQI) rules which have resulted in lenders pulling last minute credit reports and additional verification of borrower information. If you racked up a big credit card bill before the closing, this last minute credit check could result in a closing delay, price adjustment of your interest rate, or even worse a rejection of your loan application.

So wait until after the closing to take that trip to Best Buy!

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