The Federal National Mortgage Association (FNMA or Fannie Mae) effective Tuesday, June 1st is requiring that all conventional loan lenders for FNMA obtain a new credit report just a day or so before closing.
The reason for this is that FNMA has determined that the third most frequent cause of default is undisclosed debt.
This means that more important than ever, if you are buying a home or refinancing using a FNMA conventional loan, DO NOT CHANGE ANYTHING to do with your debt. With the new credit report in hand, we at McCue Mortgage Company have to compare the new credit report agianst the old one and make sure that our clients will still be approved for their mortgage. We may find ourselves in a situation where we have processed, underwritten and approved a mortgage loan application, issued a formal commitment letter and worked with the Realtor, attorney, homeseller and homebuyer to establish a closing date and then find out that the buyers just bought a car last weekend so they would have a nice new car in their nice new driveway. Unfortunately, they may not be approved again due to the new debt obligation.
This does not impact VA, FHA, CHFA, DAP or Rural Development. This only comes into play with FNMA conventional loans.
Please contact me if you have any questions or concerns regarding this.
Since 1980, Phil Turner has helped over 10,000 clients achieve the dream of homeownership. If you are planning to buy a home, please contact Phil. You'll find his professional service and years of experience exactly what you need in Eastern Connecticut's current housing market.
Phil can be reached at McCue Mortgage, located at 8 Union Street in New London, by calling (860)444-0650 or (800)781-1180 or By EMAIL.


