July 13, 2024

home mortgages
home mortgages

Beginning June 1, a new effort by mortgage giant Fannie Mae to cut down on slipshod underwriting by lenders and frauds by borrowers goes into effect.

Now, your home mortgage lender is likely to order a second full credit screening immediately before closing.

The late-minute credit report will be designed to find out whether you’ve obtained – or even shopped for – new debt between the date of your loan application and the closing. If you’ve made applications for credit of any type – for furnishings and appliances for the new house, a car, landscaping, home equity line, new credit car, you name it – the closing could be put on hold pending additional research by the lender.

If you’ve actually taken out new loans that are sizable enough to affect the debt-to-income ratio calculations used in your original mortgage approval, the whole deal could fall through. The added debt load could render you ineligible for the mortgage because you suddenly appear unable to handle the payments without a strain on your household budget.

Encinitas real estate

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