Fannie Mae to require 2nd credit check before funding starting June 1, 2010

If you're like most soon-to-be new homeowners waiting for your house to close, you keep thinking of projects you can do and things you need to buy to make your home just right.

It could be the carpeting that doesn't match your furniture, or maybe you don't want your old refrigerator in your new home. You're probably considering hitting the big-box stores so you can get your hands on all the new state-of-the-art gadgets and appliances to your new home.

You're also probably tempted to just pull out your credit card and charge the purchase, or maybe you're lured by a "12-months-with-no-interest" offer. You could have the installers on their way as soon as you have the keys!

As is often the case, what we want isn't what's best for us. Fannie Mae's new rules go into effect June 1 that require lenders to pay more attention to changes in your credit report from the day you applied until the day you close.

Lenders must refresh your report to see if your credit balances have changed or if you have acquired a new debt. They must even check out credit inquiries to see if you are obligated to pay back any 'new' loans. Lenders also have access to new fraud detection tools that can determine if you are trying to work around the system or if you have undisclosed debt.

Note that lenders can put these new rules into effect at any time prior to June 1, and for most borrowers, new debt could delay closing, or the bank could even decide against approving the loan altogether.

If you are buying a home, pay cash for all the new things you want, or wait until you can really afford the new purchases. Don't even let stores run your credit to see if you qualify. Plan a little slack in your moving schedule so you can have new carpets, appliances, etc. installed before you have to move from your old home.