We just learned that, effective June 1 (thanks for all the warning, huh), any loan done as a Fannie Mae loan (which is most of them) will require a second credit report be pulled just before the loan funds. Which means that they are going to pull another report after your loan actually closes, but before they release the money to the title company.
They are doing this to ensure that you have not acquired any more debt since the process started. Seems fair, right? Well, as with almost anything the government touches, it is poorly thought through.
When your credit is pulled again you are going to get dinged, again, for the inquiry. What if your score was borderline for you getting a program and/or rate betterment, and your score now drops below the acceptable level for that? Does your rate now change? What if you don't qualify for the program now? Do we have to start all over? Or, worse yet, do you lose the loan? We are not sure how they are going to handle these situations, but they are going to have to be addressed. Stand by...
So here's the scoop, we are two bald mortgage guys who have built a completely referral based company on princples of honesty, education and advocating for our clients. Because we are in in an industry full of people who are unethical and generally clueless, our mission, should you choose to accept it, is to bring you the "inside scoop" through the lens of those who see and deal with it everyday.
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