We are closing on a house next week, will the lender always recheck credit before closing and if so when?
Answers:
Most lenders will run a last-minute credit check prior to closing to insure that nothing drastic has changed in your credit history. I always warn prospective buyers to not make any major financial moves, such as taking on a car loan, a large purchase on a credit card, a NEW credit card, or anything similar which can possibly interfere with that last minute credit check.
Not long ago, I had a client who actually had their approval reversed because they headed out buying new furniture (a lot of it) for their new house, and put it on their credit card. Regardless of whether or not you are approved, lenders reserve the right to reverse such approval if you make major changes to your credit file by doing such purchases.
If you have already been approved for the loan you have nothing to worry about.
from what i've heard, if you make major credit card purchases before closing, you can be denied.
I think it will vary depending on the lender. You best bet is to ask your lender.
Unless you have made a major purchase that will effect your Debt to income, you have nothing to worry about. Your 714 credit score is excellent, and a swing of a couple of points, one way or the other, will not impact your loan.
Until the loan funds, you have a chance of being denied. Wait until the transaction is done before you make any major purchases.
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