Second Credit Pull Could Impact Potential Homebuyers
What a relief… you have been approved for your home loan and it is just a matter of days before the big move. Time to go to Home Depot, like my friend Frank, and purchase that new refrigerator on their 12 months no interest plan, right? WRONG!
Effective June 1st, 2010, your lender may now be required to re-pull your credit report prior to closing. Fannie Mae’s new “Loan Quality Initiative” is intended to improve loan quality and eliminate the poor underwriting practices that helped accelerate the housing market meltdown.
I see this being a particularly painful problem for many borrowers, realtors, and loan officers who do not effectively communicate the importance of managing their credit throughout the mortgage process. For those unaware of this initiative, this may lead to delayed closing dates, higher interest rates, and worst case – the decline of a loan in the eleventh hour.
To avoid this happening to you, here are some quick Do’s and Don’ts you should consider: read more »
