This is another thing for all of us to look out for. A co-worker of mine was working with a couple who are looking to buy their first home together. They credit was run and they both had very solid mid 680's fico score. They submitted their income and asset documentation and were qualified for the amount of a home that they were interested in.
They found a property and actually got under contract. Once the contract was turned into our company, since 30 days had elaspsed a new credit report was needed. ( Requirement of FHA - since the date of the credit report was 30 days prior to the sales agreement - a new report is needed ).
One of the borrower had a credit card through Wells Fargo. ( Yes, I'm putting their name out there ) Her credit limit was $5500 and her balance was $3700. They cut her credit limit down to $3500. This now put her above her credit limit which can destroy a credit report. This dropped her 65 points into the low 620's. She is going to have to pay her balance down almost $1,500 and then have a new report pulled in hopes that the scores will update. Of course this was money that they were not planning on spending before buying their first home.
Just another thing to add to the list that we all have to keep an eye out for!
Just had to share this story and see if any of you had anything similar happen with these creditors
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