As of June 1st, lenders must now verify that borrowers have not taken out any new debt from the time of application (and first credit report) to the final underwriting process. Just before a loan closes, a second credit report must be pulled to make sure there is no undisclosed debt. Some borrowers run up existing credit cards, apply for new charge accounts, buy cars and other expensive purchases on credit between contract and closing.

Undisclosed credit is a leading cause of mortgage fraud and early default on payments, so lenders are taking precautions to avoid making loans when credit reports reveal derogatory information during the final phases of underwriting. If there are changes or inconsistencies between the first and second credit reports, lenders may reject a loan or submit it to a complete re-underwrite.

Please make sure you do not buy anything on credit or make any late payments, especially while you are trying to get your mortgage.