Soft Pull on Borrowers credit is going to become the Norm...Be prepared!

On almost all conventional loans, lenders are going to start requiring that the processors do an additional soft pull on the clients credit.  This is VERY IMPORTANT that we all work together to educate our borrowers in what not to do to kill a deal right before closing. 

We need to make sure our clients do not apply for, open, or extend any credit of any kind during the loan process and on through the closing date.  If we go in and do a soft pull and there is another inquiry, then the client has to provide documentation proving/stating that they did not receive any additional credit that isn't already showing on the credit report. 

Because it can often take 1-2 months before a new credit line appears on someones credit, the lenders are hoping to avoid approving a client who goes out and buys a bunch of stuff at the same time before it shows up, because most likely they wouldn't qualify if we knew all that they were responsible for.   These soft pulls will hopefully catch borrowers like this.  Its extremely important that together we educate our clients on what could hurt their purchase.  If they do end up getting more credit within the process, we have to provide documentation of the new payment and rerun them through underwriting, which could cause major delays. 

Be prepared and help us communicate with borrowers!