The answer is yes. Lenders pull borrowers’ credit at the beginning of the approval process, and then again just prior to closing.

Current or potential creditors — like credit card issuers, auto lenders and mortgage lenders — can pull your credit score and report to determine creditworthiness as well. Credit history is a major factor in determining (a) whether to give you a loan or credit card, and (b) the terms of that loan or credit card.

If you believe that somebody wrongfully pulled your credit report, you might be able to sue them in state or federal court for damages. Your state’s laws may also offer additional relief and remedies.

Inquiries and new accounts can cause your credit scores to drop. The effect is usually small and fairly temporary, but in a mortgage situation, a drop of a few points could cost you thousands of dollars over the life of the loan if you are forced to take a higher rate.

Yes, you can still be denied after you’ve been cleared to close. While clear to close signifies that the closing date is coming, it doesn’t mean the lender cannot back out of the deal. They may recheck your credit and employment status since a considerable amount of time has passed since you’ve applied for your loan.

Fortunately, a lower score at closing is not all by itself a reason to increase your mortgage rate or decline your loan. Credit scores move up and down all the time, and a small drop won’t cause the lender to reprice your mortgage or reverse your loan approval. If you don’t, you’ll no longer have a loan.

Most but not all lenders check your credit a second time with a “soft credit inquiry”, typically within seven days of the expected closing date of your mortgage.

5 Things NOT to do Before Closing on Your New Home (And What you SHOULD do!)

1. Don’t Buy or Lease A New Car.
2. Don’t Sign Up for Deferred Loans.
3. Don’t switch jobs.
4. Don’t forget to alert your lender to an influx of cash.
5. Don’t Run Up Credit Card Debt (or Open New Credit Card Accounts)
6. Bonus Advice! Don’t Chew Your Nails.

Photo identification. Your signature will need to be notarized on various title and loan documents (if you’re taking out a loan), so you’ll have to prove your identity. Take along your state-issued photo identification, such as a driver’s license, to the closing—even if your purchase is to be made solely with cash.

To avoid any complications when closing your home, here is the list of things not to do after closing on a house.

1. Do not check up on your credit report.
2. Do not open a new credit.
3. Do not close any credit accounts.
4. Do not quit your job.
5. Do not add to your credit cards’ credit limit.
6. Do not cosign a loan with anyone.

There are really only two rules when it comes to proper attire for a home closing: 1) the Realtors and other professionals (closers and lender) should wear formal business attire (sorry, no “business casual”); 2) clients can wear whatever they want. See, “Back in (Realtor) Fashion: Ties, Sport Coats, and Scarves.”

Home Closing Checklist for Buyers

1. Contact the closing agent.
2. Review your closing documents ahead of time.
3. Check the basics.
4. Check the fees.
5. Review seller responsibilities.
6. Be payment ready.
7. Bonus closing tip.

It’s common to think that buying a few pieces of new furniture is OK as long as you’re not paying any interest or don’t have to make any payments until after your mortgage loan closes. If your ratios were close, the extra payments could cause you to no longer qualify or at the very least, delay your closing.

Yes. For certain types of mortgages, after you sign your mortgage closing documents, you may be able to change your mind. You have the right to cancel, also known as the right of rescission, for most non-purchase money mortgages. Refinances and home equity loans are examples of non-purchase money mortgages.

Consumers can continue to use their charge cards during a mortgage transaction, but they need to be aware of the timing and not make purchases during the time when it could completely derail closing your loan, advises Rogers.

The wait is over. For a home purchase, it’s best to wait at least a full business day after closing before applying for any new credit cards to make sure your loan has been funded and disbursed. “Until you have the keys, don’t do anything,” Karetskiy said. Your refinance is not funded until these three days have passed …

Yup, you should be totally fine to buy after closing.. You could literally walk out of closing and go straight to buying a car, without any fear of blow back. The only danger being you don’t over commit yourself. You know your comfort level and how much debt to take on.

The best day to close a home purchase, or a mortgage refinance, is on the last business day of the month, unless it falls on a Monday. Then you should close on the preceding Friday so you don’t have to pay interest over a weekend. Here’s why. Mortgage interest is paid in arrears.