First Franklin Financial 3 Hours before closing denied a home loan Internet

I was purchasing a home from First Franklin Financial after being referred to them by Lending Tree. Every thing was 'hunky-dorry' all the way down to the day before closing. I had the utilities turned on and each one checked my credit. This in addition to one other entry which popped up that I was unaware of led to my credit score dropping below their 'preferred' limit. When I questioned their practice of running an additional credit report minutes before funding a loan they said that is a 'usual' practice.

Also, when I stated that the majority of the score dropping was turning on the utilities my loan officer was aghast. Why would I do that? Didn't I know it would affect my score??

The company then stated that I could have a loan if I wished to put $15K down or I could be referred to 'another company which they work with'.

What I wish to know is: How can I move into a house w/out the utilities on - especially since in our area it can take up to 3 wks to get the phone turned on. Also, why other lenders I spoke to after this were appalled at the practice of pulling a report so late?
Why didn't they look at the credit report to see that the scores had been impacted by the utilities and couldn't the approval department have taken that into consideration?

Not only was I led astray by this lender but I had read several other rip-off reports regarding them and this is exactly what they had done to other individuals. Don't trust them and don't give them your business.

Cindy
las vegas, Nevada
U.S.A.