Home Buyers: Save Your Money
Most home buyers realize that when getting a mortgage loan, the bank runs a credit check to determine your payment history, level of debt, etc. A positive credit report score often means that your loan will be approved. But there is still room for caution, as described below.
In many loans today, depending on loan type and accessibility of sellers/lenders, we have an excessive time lapse between contract and closing. A new policy from Fannie Mae (effective June 1, 2010), requires lenders to “refresh” the borrower’s credit report just prior to closing. Which means buyers must be careful not to negatively impact their credit score during that time period with careless spending and other credit NO-NOs.
So Buyers, here’s some advice prior to your home closing be vigilant NOT to increase your credit balances, DON’T open new lines of credit, do NOT buy a new vehicle, motorcycle or boat, new appliances, expensive furniture or other pricey items that require you to finance the purchase or make monthly payments. These actions could torpedo your closing and end up costing you your dream home.
Discuss this new phenomenon with your realtor or click here to contact an expert Chicago real estate agent.