Fannie Mae Loan Quality Initiative-Checklist of Do's and Don'ts During Escrow
Here's a handy checklist for you!
I received an email this morning from Mai Yahn, Sr. Vice President of Nova Home Loans, Phoenix, AZ, outlining yet another step in the mortgage process when buying a new home. I worked with Mai, and her associate, Carla Stolkin, on a recent real estate transaction involving a FHA Home loan and the transaction went seamlessly smooth. They urge us to share their email with buyers, and with their permission, am re-printing their information here. The email reads,
"Fannie Mae has instituted a new policy called the Fannie Mae Loan Quality Initiative that requires mortgage lenders to re-pull credit immediately before a loan closes.
If your borrower’s credit score changes as a result of any purchases made on a credit card or for any other reason, it will be discovered on the pre-closing credit re-pull and we MUST send it back to underwriting to ensure the borrower still qualifies for the loan. Consequently, the loan closing could be delayed or, even worse, unable to fund. All payments on current bills should be made in a timely manner. Any new credit charges should be postponed until after the first mortgage payment is made if at all possible.
Additionally, the Loan Quality Initiative requires lenders to confirm that companies or individuals involved in the origination, underwriting, or servicing of the mortgage transaction are not on the General Services Administration (GSA) Excluded Party List or the HUD Limited Denial of Participation List (“LDP List”) prior to the close of the loan. Regardless of the reason for the party being excluded, should NOVA identify any party to the transaction included on either list, we will be unable to complete the loan transaction. "
Here is a list of helpful tips to ensure an effortless loan process.
These DOs and DON’Ts will help avoid any delays with your loan approval.
- DO continue making your mortgage or rent payments
- DO stay current on all existing accounts
- DO keep working at your current employer
- DO keep your same insurance company
- DO continue living at your current residence
- DO continue to use your credit as normal
- DO call your lender if you have any questions
- DON’T make a major purchase (car, boat, fur, jewelry, etc.)
- DON’T apply for new credit (even if you seem pre-approved)
- DON’T transfer any balances from one account to another
- DON’T pay off charge offs without a discussion with your lender first
- DON’T pay off collections without a discussion with your lender first
- DON’T buy any furniture
- DON’T close any credit card accounts
- DON’T change bank accounts
- DON’T max out or over-charge on your credit card accounts
- DON’T take out a new loan
- DON’T start any home improvement projcets
- DON’T finance any elective medical procedure
- DON’T open a new cellular account- DON’T join a fitness club
Get the pdf here for the Fannie Mae Loan Quality Initiative Checklist of Do's and Don'ts during Escrow!
Should you have any questions about the Fannie Mae Loan Quality Initiative , or if I can help you with your home buying or selling in Marana, Oro Valley, Tucson or Vail, please don't hesitate to call!