More Stringent Screening Means Borrowers Must Watch Credit Until Closing Day

The new requirements for credit transparency mean that buyers must be ready for an in-depth look at their credit histories, including inquiries into new credit sources. Lenders may respond to inquiries or new debts by revising the terms or rates that they have offered. In addition, Fannie Mae now requires lenders to track an applicant’s credit up to the day of closing, including credit inquiries that could spur the lender to rewrite the original quote if the applicant has taken on new debts. The more rigorous screening means that buyers need to provide every detail related to their credit. Lenders are suggesting that mortgage applicants buy nothing until after the closing.

SOURCE: The Washington Post, 2/4/11

URL: http://www.washingtonpost.com/wp-dyn/content/article/2011/02/04/AR2011020402736.html