Fannie Mae is Making Obtaining a Home Loan EVEN More Difficult!

Fannie Mae is Making Obtaining a Home Loan EVEN More Difficult!

Fannie Mae Loans?

Fannie Mae Loans?

Wow with all the good news of late in the housing industry I thought we were maybe heading for smoother waters. Slow down partner. Now Fannie Mae has to step up and change the rules yet again.

Fannie Mae new rule starting June 1st. When you apply for a loan Fannie Mae will screen your credit (like normal) at the beginning of the process but also a “Last Minute CREDIT Screening” just before closing.


They do not want your debt to income ratio to change from the time of application and initial approval to closing. for some home buyers this is a really difficult thing to not do. They think of a house and automatically think of all the cool stuff they want to buy and have in the new home. I suggest you just say NO to new credit until after the closing.

It’s simple…Fannie Mae wants to check to see if you have opened or EVEN applied for new credit since you applied for your loan with them to purchase your home. Basically if you make applications of ANY TYPE for credit prior to closing other than your home loan you could be in serious trouble. It could cause your loan to be put on hold and possibly sent back into underwriting or even denied if they find a new credit application or credit check.

When you apply for a home loan with Fannie Mae do NOT do this!

Do not:

  • open a new credit card
  • call the bank for higher limit on your current cards
  • miss a payment on an existing credit account
  • apply for credit for furniture for the new home
  • hire a landscaper on credit
  • buy a new car on credit
  • open a home equity line
  • you get the picture-do not apply or open any type of credit or you could be in DEFAULT and lose your Earnest Money.

Bottom line is you shouldn’t do anything that should jeopardize your home loan between initial application and closing which means NO new purchases or credit accounts.

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