As of June 1st, a credit report will be pulled right before closing. A MUST READ!

Mortgage and Lending with - Legend Lending NMLS #293883

Fannie Mae has announced that as of June 1st a new credit report will be required before closing.  This is so the underwriter knows if any new credit was opened or applied for.  If a new credit pull or inquiry is found, it will need to be documented.  Keep in mind that this will be painful since it may take days to track down the proof it was or wasn't opened.  And also what the payment of this new credit account is.  Since this credit check is happening right before closing a worse case scenario is the closing being delayed.  Or even worse the loan could be denied since the new credit accounts payment could affect the debt to income ratio.  Most conventional loans are based on Fannie Mae guidelines.  At this time Freddie Mac and FHA have not applied this initiative yet.  But, do not be surprised if banks start to apply this for all loans and the possibility that Freddie Mac and FHA add this rule.  It is more important then ever to make sure when buying a home or refinancing to not apply for any new credit.  In fact do let anyone pull your credit until after closing, this includes minor items such as Cable, Alarm companies, etc.  Please call me with any questions. 

Posted by





David Krichmar 

Mortgage Banker NMLS#293883 

Legend Home Lending

LLC NMLS #229421

Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide

Appeared On Fox Business


Named 5 Star Mortgage Professional 2013, 2014, 2015, 2016, 2017

Named Top Mortgage Professional 2010,2011


For More Mortgage Info Follow me at  Dave's Blog


If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!  


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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Ernie Steele 05/17/2010 03:08 AM
  2. Roy Kelley 05/17/2010 03:12 AM
  3. Stephen Kendrick 05/17/2010 03:31 PM
ActiveRain Community
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Billi Evans
Murney Associates - Springfield, MO

Thanks for the heads up. Good info to know.

May 17, 2010 03:05 AM #1
Ernie Steele
Berkshire Hathaway HomeServices Homesale Realty - Lebanon, PA
Call me, let's get started!!! 717-273-3774

Thanks for the tip Dave, I'm going to re-post this to keep the information going...Enjoy the day.

May 17, 2010 03:06 AM #2
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good information to share with every home buyer. Thanks for your post.

 Blooming for home buyers in Maryland.

May 17, 2010 03:12 AM #3
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

That seems to be getting more and more common around here but I didn't know that it was a new FNMA requirement. Thanks for the info.

May 17, 2010 03:13 AM #4
David Obbee - Agoura Hills, CA

David: Thanks for the heads-up.  I imagine this provision will catch the occasional fraud situation, though, so ultimately it's probably a necessary measure.

May 17, 2010 03:14 AM #5
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