Friday, May 21, 2010

Starting, June 1, Lenders to order a last minute Credit Report

Starting June 1, your lender is likely to order a second full credit screening immediately before closing a loan.
The last-minute credit report will be designed to check if you've obtained, or even shopped for new debt between the date of your loan application and the closing. In the event you've made applications for credit of any type:* furnishings and appliances for the new house, * a car, * landscaping, a* home equity line, * a new credit card the closing could be put on hold pending additional research by the lender.


http://www.latimes.com/business/la-fi-harney-20100516,0,3335445,print.story

The issue is simple, the goal is to prevent loan fraud and abuse, getting a FHA loan with 3.5% down and then loading up on debt, with new car, appliances etc.

Thinking of Buying or Selling your home call us at 408-656-5343 or 408-859-4111

or got to our web site at

www.ruthandperry.com
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