When you apply for a home loan, a credit report is pulled to determine if your credit history meets the guidelines for the program chosen. Your credit history at that time only reflects what was done on your credit about two months ago. It does not give you your "today's" credit information.
Why is that important to know? If you have purchased an item, such as a car, just prior to your loan application or charged more money to a credit card, this could affect your ability to qualify for your loan. The credit report at application would not reflect the additional debt.
Beginning 06-01-10, all Conventional loans will require two credit reports: one at the time of application and one just before the loan closes. If you are not aware of this, your loan could be denied at the very end due to lower credit scores from the additional credit you have incurred or too much debt to qualify for the loan.
Maintaining the status quo and not taking on new debt is important when you are planning to buy a home and need a mortgage loan.
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