If the lender approves the borrower for a loan, the lender will expect his or her financial picture to remain roughly the same until after the loan closes. The lender will generally also require the borrower to sign a statement at closing affirming that there has been no change in the borrower’s financial ability to repay the loan and that the borrower’s employment status remains the same. If you buy a Corvette two weeks before closing and you get a loan to pay for the car, or even if you lease it, that information will immediately get posted to your credit history, and your mortgage lender will see it. The lender will also know how much you’re going to pay each month for that loan, and that car payment will have a direct impact on whether the lender feels you’ll be able to afford your new home loan. Read More