If you are buying a home in Charlotte NC and you have been approved for a mortgage based on your credit, be aware that, effective June 1, 2010, your lender may order another full credit screening.
This is to ensure that you have not taken out, or even shopped for additional loans – a new car, furniture, and new credit card, etc. If the new credit screening finds that you have, the loan will be put on hold pending further investigation. If the loans are large enough to affect the debt-to-income ratio this could put an end to the loan as it could mean monthly payments that are too high to support your budget.
Part of Fannie Mae’s loan quality initiative, lenders will be required to get two credit reports, social security numbers and verification of the borrower’s occupancy of property.
When buying a home in Charlotte NC, resist the urge to continue spending after you have applied for a mortgage, because you spending pattern is going to be closely investigated after the second credit screening. You may need new furniture for that home, but you might want to wait until after the closing lest you lose your loan.
Originally posted at http://www.homejane.com/mortgage-credit-screenings.html
Debe – This is a great post, I know so many buyers want to spend spend spend after they go under contract on their new home wanting to buy paint, furniture, etc., but they need to hold off until the day of closing.
Buyers so often don’t think about the potential consequences as they are caught up in the excitement of getting ready for their new home. A colleague of mine has some buyer who just lost the home they were buying because they went on a spending spree days before closing and the lender check ed their credit. BIG oops.