Closings Could be Cancelled....RIGHT BEFORE CLOSING!!!!

Larry:  Although pulling a credit report just prior to a closing happens in many instances now, this mandatory move will complicate things once again .. you are so right about that.  You are also spot on with trying to educate the agents/brokers and general public about this upcoming change. Hopefully the more they understand the changes and rules, the more patience all will have moving towards the closing table.  We can hope.   Good post .. and best of luck moving forward!

Gene

Closings are not a sure thing; of that we can be sure.  This highlights the importance of both lending and real estate professionals spending time getting to know our clients early in the process, and engaging with them to keep them from wandering into closing trouble unknowingly. 

It is almost amazing how many pieces of red tape are attached to a normal loan. Even clients with near perfect credit scores are subjected to borderline insanity with what all underwriters need to close anymore. I suspect it is a necessary evil but still a pain.

Celebrate what is right in the world. Imagine how strong our market will be in 3-5 years when this strong clients go to resale. No interest only loans, and no crazy refi stuff.

It seems to make sense... but what next??? I'm continually amazed

now I have to research "shotgunning".

(now, for those who post:

"Thanks for posting. We learn a lot from Active Rain blogs. Best Regards,"

on all of their comments... I call that shotgun commenting...  those of you who are STOOPID enough to do stuff like that... you should oughta turn off the button that allows busybodies like me to check your old comments and see that's the same comment you leave on everybody's posts... doofuses..!!

we now return you to your regular programing and the Larry Bettag show).

Buyer education 101 has never been more needed than today. Once  you sign a contract and get a loan, put your pen away and don't do a thing that involves credit even if it involves buying a stick of gum on a credit card. If you do, all your hard work and money for your appraisal and inspection could be down the drain.

I didn't know this new requirement for Fannie Mae loans, but it has happened to clients of mine in the past where credit was pulled again just before closing so I always try to warn buyers not to do anything that might affect their credit until after closing.  Now we are really going to have to make sure that buyers understand this. 

Larry,

Just one more thing to worry about.  A lot of things can change on someone's credit in 30 days and most of the time it is out of our hands.  The excellent credit borrowers will not have to worry, but our marginal, barely getting approved clients will have one more thing to think about.  Thanks for sharing.

As THEY always say, "it ain't over til the fat lady sings".  And, this is certainly true in any real estate transaction today.  Thanks for the heads-up on this one.