REBLOG of ALAN MAY: Lovely Rita Meter Maid!?
Buyers need to connect with a mortgage banker or broker they can trust to help them make wise decisions, and then heed the advice they get to increase the odds of getting to closing.
Alan May's credit scenarios in this post ring too true!
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At our Monday morning staff meeting Greg Schneider, our PHH loan officer, mentioned that he has recently run into several loans, that have blown up at the last minute, because the buyer had parking tickets, that the local municipalities turned over for collection.
Those collection notices had caused the buyer's credit scores to drop as much as 100 points! 100 points!!! Now, not all municipalities are reporting to credit agencies, but it might be worth your while to make sure that your tickets are paid in full.
Additionally, Greg mentioned that all lenders are now required by Fannie Mae to pull a new credit report when the loan documents are produced (just prior to closing). If your credit score has changed, it could dramatically effect your ability to get your loan. A lower credit score could impact your interest rate, cause the need to reissue the GFE (and the 72 hour delay associated with that) or possibly your ability to close at all.
A recent closing was held up, because prior to the closing the buyer opened some new credit lines. Now we're all familiar enough, that we tell our clients "Don't buy a new car, between now and closing", but this woman had merely opened a Target Card, and a Gap Card, because both of those stores were offering 10% off her purchases, if she opened a card with them. The closing was delayed a full 30 days, while they waited after she'd paid off those cards.
Just a couple of more things to keep on your radar, as you work for your buyers and sellers.
ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate
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Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779 Cell: 847.924.3313 Email: Almay@aol.comEvanston Real Estate & North Shore Real Estate
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