service, new internet service, etc.) until the loan is closed. If the borrower wants to see his full credit report, the lender probably already has it and will provide it to him. The lender is going to check the borrower’s credit again near closing to ensure the credit rating has not changed. If it has changed, the borrower may have issues with closing or even be turned down. #5 is consolidating bills while purchasing a home. Consolidating debt is a common practice, and helps with managing monthly bills. However, even if the monthly payment may be less than the borrower is currently paying, arranging a consolidation loan while in the mortgage underwriting period will affect the borrower’s credit rating, putting obstacles in the way of a smooth approval. #6 is moving assets between bank accounts. I advise borrowers I am working with not to move money around, because the underwriters are keeping watch and want to make sure that everything matches up with the requirements. If funds are moved around, the borrower will have to provide documentation showing where it went, and it makes things complicated and can cause delay. #7 is the sin of misplacing or losing track of financial documents during the process. Often, a buyer is anxious to pack and begins storing items in preparation for the big move. In packing the house, they pack all financial documents inside of a box and then quickly lose track of it in the packing chaos. If I call the borrower a few days before closing and ask them for a document — and they can’t find it — that could seriously affect the outcome of the loan. I tell borrowers, “Before you start moving, pack your financial documents up separately, and make sure you have access to them all the way through the loan process. Don’t do anything with that paperwork until you’ve closed the deal, the loan is funded, and you are good to go with purchasing that house.”
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