B I G Changes For Obtaining Your Mortgage

Phil Denfeld of First Heritage Mortgage sent this to me today & it is truly “news you can use” if you’re in the process of purchasing a home or plan to in the near future!

I mentioned last Friday that a change was coming regarding credit. Well it is here.

For loan applications taken as of June 1^st, lenders will now be required to recheck a customer’s credit score right before closing. I say “right before closing” because the actual time frame has not actually been dictated to us yet, but I know that we will be required to verify no new accounts have been opened from the time of loan application until the day of closing. In addition, we will also have to investigate any new inquiries on the credit report and also “re-approve” any loan that shows a change in the debts from the time of underwriting. This is significant because in the past, customer’s have been able to stop worrying about keeping their credit clean or accounts low once the last credit report was pulled or once the loan file was underwritten. THAT IS NOT THE CASE ANY LONGER! From now on, we will be instructing all of our clients to not do ANYTHING that will impact credit in any way until their loan is closed! We are working on a new disclosure for the customers to sign at loan application that will explain this and we will also be counseling clients verbally. I want you to be aware of this as well so you can remind clients of the change and remind them not to do anything that can impact payments or accounts from the time they write the contract to the time of closing unless they contact their loan officer. A seemingly minor change could keep a loan from closing in the future.

Don’t forget to stay up to date on the latest mortgage information ~ Check Out Phil’s blog HERE.

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