Fannie Mae is implementing a new guideline effective 6/1/2010 which requires banks to pull an ADDITIONAL credit report on borrowers just prior to closing.
What this means: Potentially if a borrower's middle credit score drops by just 1 point the file could be send back to underwriting and delay the closing for up to one week. In the worst case, a borrower's credit score could drop below the minimum requirement and cause the file to be denied or reduce the score below a cut off point for a particular interest rate making the rate INCREASE at the last minute.
Solution: Put ALL credit cards in a safety deposit box and DO NOT use them until after closing. In addition, keep away from places that may INQUIRE into a borrower's credit (I.e furniture and home improvement store and worst of all car dealers). With all the new guidelines from banks, borrowing money is getting increasing more difficult and adhering to the bank's rules is imperative.
Provide by: Jim Monninger, First Trust Mortgage, Jim@FirstTrustMortgage.biz
No comments:
Post a Comment