As of June 1st, a credit report will be pulled right before closing.
Important notice for Maryland home buyers.
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.