Be wary!

Dear Clients,

Starting June 1, 2010 Fannie Mae is going to implement some changes to their underwriting process. Most of them are minor and will not have any impact, but the one that MAY change things is the lenders will be pulling a NEW credit report prior to ordering loan documents and/or closing.

This means that even after you receive a loan approval, if you go out and buy a new car or purchase something expensive on your credit card, the underwriter will rework the new debt and if it is above the maximum allowed debt to income ratio, the loan would then be declined.

I am bringing this up because once a loan contingency is lifted, your money is no longer refundable. If Marc is doing the loan for you he will make sure to be crystal clear about the new process, but in case Marc is not doing it, this is VERY IMPORTANT to bring up as I don’t want to rely on the lender to do so.

Related articles

• Lenders likely to order second, last-minute credit report before closing on a mortgage (latimes.com)

Filed under: Credit, Credit Cards, Current Events, Finance, VRN