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

Reblogger Stephen Kendrick
Property Manager with Keller Williams Realty Southwest

Original content by David Krichmar 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. 

 

 

www.DaveYourMortgageGuy.com

"Helping You Thru the Whole Process"

David Krichmar

Mortgage Banker/Broker

Moncor Mortgage Bank

cell:832-689-6012

David.Krichmar@gmail.com

 

If you are looking for a mortgage in Fort Bend County, Harris County, Brazoria County or anywhere in Texas I am your GUY!

 

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Rainmaker
61,363
For Buyers Only Realty
FOR BUYERS ONLY REALTY - Saint Augustine, FL
Sharon Stevens & Dwight Cole

good to know... boy it is hard to keep up wit hall the changes !

May 17, 2010 03:33 PM #1
Rainmaker
1,237,346
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

This possibility has been around for decades and buyers in escrow were advised not to test-drive new cars because it would put a ding on their credit.....buyers need to go BACK TO THE BASICS and "push away from CREDIT" during the process anyway!!!

May 17, 2010 08:20 PM #2
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Rainer
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Stephen Kendrick

Making Property Management Manageable
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