Lenders Are Pulling Your Credit The Day Before Closing in Birmingham Alabama

Collier Swecker video blogs about Fannie Mae’s (and undoubtedly most other loan programs) decision to require Lenders who are originating mortgages that will be sold to Fannie Mae to pull a credit report on the borrowers immediately before closing.  This is was an understandable decision for Fannie Mae because many borrowers who get a finalized sales contract on a home and get a loan approval for the purchase, get so excited that they run out and buy furniture and other furnishings and do so by opening new lines of credit at various stores. This causes the borrowers monthly obligations to change due to the new debt that has been created and the borrower may now not meet the Debt-to-Income requirements that were required by the Lender under the original approval.  All borrowers need to ask their lender if it is ok to make major purchases after they receive initial loan approval but prior to closing, or else they may find that they may have a home to put that brand new furniture. In reality, I have been advising my clients not to even think of opening new lines of credit until after the loan has closed and all monies dispersed! If you have any comments or questions about Lenders wanting a second credit report right before closing, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.

   

About Collier Swecker

Collier Swecker is a licensed real estate broker, attorney, blogger, speaker and entrepreneur. He is the founding partner of the Mega Agent Real Estate Team at RE/MAX Advantage which ranks as one of the top selling real estate teams in Alabama. Collier also acts as a business and marketing consultant for small business start-ups.

Collier graduated from Auburn University (B.A., 1998), Cumberland School of Law (Juris Doctor, 2002) and Washington University School of Law in St. Louis (Masters of Law in Taxation, 2003). Collier was the principal partner of the law firm Swecker and Sparks LLC for 3 years before leaving the law practice for real estate development and sales.

Collier is a native of Yorktown, Virginia and currently resides in Birmingham, Alabama with his wife, Amanda Capps Swecker. Collier & Amanda are the proud parents to a beautiful daughter, Julia Abigayle. They have one dog named Kramer.

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