Preventing Last Minute Mortgage Problems - a quick Do & Don't for every Buyer!

Mortgage tips for Buyers.

Preventing the last minute collapse of your mortgage file doesn't take much...just knowing how the game is played. A new rule (Fannie) called Loan Quality Initiative went into effect on July 1, 2010 that requires lenders, Before Closing, to check credit to make sure borrowers have not incurred any new debts. If borrowers incur More debt, and it affects the underwriting ratios by more than 2%, the loan will have to be re-underwritten prior to closing. Here's some Old School Advice that's still relevant!


Don’t – allow multiple credit checks

Don’t - apply for new credit within 45 days of signing a contract

Don’t – “Shop” for new credit before closing (Furniture, cars, etc)

Don’t – Go on a spending spree (using your credit limits) to buy things for your new home.



Do – File tax returns and/or extensions

Do – Explain or document all inquiries on your credit report

Do – Disclose all Debt – even if it did not show up on your credit report

Do – Work with a knowledgeable lender who can help you navigate the ever-changing mortgage industry.