Credit Alert For Mortage Application After June 1, 2010
All lenders dealing with Fannie Mae and Freddie Mac mortgages (conventional. Conforming loans, NOT an FHA or VA loans, as of yet) must review your credit again a few days prior to closing. This is being done to make sure that you still qualify for the loan that was previously approved, in other words, you haven't incurred new additional debt, your credit score hasn't decreased enough to change the underwriting decision or it hasn't gone lower and effected the rate and fees charged on your loan.
What does this mean?
DO NOT jeopardize the closing of your new loan or possibly the purchase of your new home by doing any of the following that COULD AFFECT your credit score in a negative way:
DO NOT apply for new credit of any kind including, but not limited to, new furniture and appliances for your new home, a new car, a new credit card, etc.
DO NOT pay off "collection" or "charged-off" balances that appear on your credit report. If the lender brought them to your attention and requires them to be paid off, ONLY DO SO AT THE CLOSING, NOT BEFORE!
DO NOT "max-out" or over charge on your credit card accounts.
DO NOT consolidate your multiple credit card accounts into fewer account.
DO NOT close credit card accounts.
DO NOT be late on any payments, even by just 1 day.
Do NOT dispute anything on your credit report.
A DECREASE IN YOUR CREDIT SCORE (by a little as 1 point in some cases) or an increase in payments could change the approval of your loan or affect the rate and/or fees.
Alan F. Gross
Senior Mortgage Consultant
PrimeLending, A PlainsCapital Company
Home Office: 240.813.0614
HomeMortgageAdvisor@gmail.com
www.mtg-info.net
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