It’s very tempting!  You’ve got a contract on the house of your dreams.  You’ve applied for a loan and the lender said “yes.”  Then you go window shopping and fall in love with a beautiful new sofa for your new living room!  It’s the exact right color for your new house too!

Then…your lender pulls up your new credit standings.  (Yes, most lenders now pull your credit just before the closing day.)

Fannie Mae issued some new rules on January 10, 2014. They call it the “Ability to Repay/Qualified Mortgage Rule.”  It’s a regulation written by the Consumer Financial Protection Bureau in agreement with requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Plan.  It is a rule written to make sure that mortgages are given only to borrowers who can repay the loan.   Under this rule lenders are required to verify your ability to repay.
So when the lender runs that final credit check and finds any new purchases, it could delay your closing or even CANCEL the loan altogether.

So here are 10 commandments to keep in mind when buying a home or applying for a real estate loan:

1. Thou shalt not change jobs, quit your job OR become self-employed.

2. Thou shalt not buy a car, van or truck (or you just might be living in it)!

3. Thou shalt not buy furniture.

4. Thou shalt not originate any inquiries into your credit.

5. Thou shalt not spend money you have set aside for closing.

6. Thou shalt not change bank accounts.

7. Thou shalt not omit debts or liabilities from your loan application.

8. Thou shalt not use your charge cards excessively or let your accounts get behind.

9. Thou shalt not make large deposits without first checking with your loan officer or lender.

10. Thou shalt not co-sign a loan for anyone.