Homebuyers during the loan process should be careful to watch any frivolous spending to avoid getting their loan rejected or delayed. Borrowers typically think that their lender is satisfied with their history after their loan has been approved, but borrowers should be advised to keep their credit history the exact same until everything is final. Remember, a lender will not only run your credit report when you apply for a loan, but will update it at the time of closing to check for any new debt. New liabilities that pop-up on a credit report could delay or even reject a loan application. For example, if a borrower was approved with a debt to income ratio at 44% when they applied, but they tipped over 45% after a purchase could be rejected right before they were set to close and get the keys to their new home.
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