The Washington Post has an interesting article entitled: Applying for mortgage? Starting June 1, you could face another credit screening. Basically, the article states, if you’re thinking about applying for a home mortgage, beginning June 1, your lender is likely to order a second full credit screening immediately before your closing.
The reason: Mortgage lenders want to find out whether you have obtained — new debt between the date of your mortgage application and the closing.
If you’ve actually taken out new loans — let’s say furnishings for your new condo — that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through.
File Under: Once your mortgage is approved, hide your credit cards.