If you are thinking about or are applying for a home mortgage here is some very important news. Beginning June 1, 2010 lenders’ are more than likely going to order a full credit report immediately before closing.

Be careful not to start shopping early for furniture and for appliances for your new home. Do not use more credit than is normal during your loan process. Do not accept new lines of credit nor apply for new lines of credit.  Your loan could be put on pending while researching any changes, and in fact could be denied at the last minute if your debt-to-income ratio should change.

These changes are part of an effort by mortgage giant Fannie Mae to cut down on poor underwriting by lenders and frauds by borrower.

Fannie’s loan qualification initiative will require lenders not only to pull two credit reports for each mortgage transaction but also to verify borrower occupancy plans for the property, Social Security numbers and taxpayer ID numbers, among other changes.

  How to deal with these changes? Abstain. During your 45 or 60 day loan period from application to closing, don’t do anything to change your credit status. Resist spending during this period and your second credit report should look like your first report.