Although a closing date has been set, there’s still plenty that can happen before the buyer’s name is signed on the dotted line that can make the deal fall through, writes MarketWatch reporter Daniel Goldstein.

There are buyers who splurge on other expenses before they close on their new home, which can be a problem After all, you’ve probably got big-ticket items to buy like a washer and dryer, or a lawn mower, or new furniture, or bedding. And you’ve probably paid down your other credit cards and paid off car loans and otherwise cleaned up anything bad on your credit ahead of applying for a mortgage. Now there’s a store offering you a $10,000 line of credit for furniture with no payments for a year so you can fill your new house?

Many people do not realize that their credit is monitored right up to the day they sign the contract. According to a recent TransUnion study, consumers increase their credit card spending as much as two or three times their previous rate just before they close on a home.

“I’ve had clients call me and say they’ve quit their job, or bought a new car,” just before close, says Mark Livingstone, a mortgage broker with Cornerstone First Financial in Washington, D.C. “All I can do is say ‘what were you thinking?’ I’ve seen a number of deals fall through that way.”

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