Seattle Home Loan Approval or Deal Killer From Fannie Mae
Attention Seattle real estate buyers and homeowners! If you have plans to buy a new home or refinance please continue reading. Fannie Mae has instructed lenders to have a process to discover new potential debt before the loan closes. Yes right before closing! Please educate yourself and ask questions!
During the buying and refinancing process you always review credit scores upfront to make sure you qualify. From the initial loan application to close/recording if you establish new credit, use current credit cards, buy a car, miss a payment, this can cause a potential delay at closing or possibly not even close at all.
Fannie Mae announced “Loan Quality Initiative” with the purpose of discovering new debt when the second credit review is taken place prior to closing. If you are applying for a new mortgage, please consult your mortgage loan originator with questions.
In order to eliminate any to all possible problems at closing here are a few tips:
Do not apply or establish new credit until your transaction closes.
Maintain the current credit card balances (no large purchases)
Do not pay or close any collection item accounts
Do not attempt any type of debt consolidation
Especially as a home buyer, you want to purchase new furniture; appliances prior to closing on a new home but please wait or consult with your licensed loan originator. You definitely do not want to jeopardize closing.
If you have questions please post below or contact us directly.