You’ve been searching for homes for a while now and you’ve finally found your dream home, made an offer, and the seller accepted! You’re smart and you’ve already got your mortgage pre-approval so now it’s time to kick it in to high gear and work towards closing.
After a week or so of ordering inspections, surveys, and providing needed documents to the lender, many of my buyers end up going out to shop for furniture and decorations for their about-to-be new home. Starting June 1st, 2010 this is going to be a big no-no.
Under the new rules, Fannie Mae and other mortgage giants are going to be doing a last-minute double-check of borrower’s credit reports. Typically you apply for a mortgage and up-front the lender checks your credit report. Now, with the new rules, the lender will also check your report just before closing to make sure that there are no new inquiries or debts reported since the original check. And if there are? Well, that could delay closing … and you better hope that these new debts won’t make your debt-to-income ratio go too high!
So what’s the best bet to avoid this dilemma? Abstinence. Don’t apply for any new debt or increase any credit limits until after closing!
Are you looking for a pre-approval in order to purchase a home? Contact me and I can recommend a few good lenders. 😉
Other related information
- Buyers resource center
- Mortgage Calculators
- Info on Moving to Port St Lucie
- Do’s and Dont’s for Your Credit During the Loan Process