By Amber Wason

This weekend’s real estate section in the Washington Post shared a very important message for any prospective home buyer:

Applying for mortgage? Starting June 1, you could face another credit screening (read the complete article by Kenneth R. Harney here)

We always warn buyers: once you start looking for new home, halt all other large purchases until after you own the home. This isn’t just conservative thinking… it’s to protect your ability to close.

Now, beginning June 1st, lenders may be required to pull your credit score again, just before settlement, to ensure your credit score has not changed drastically. If you have added another large purchase to your debt, it could affect your debt-to-income ratio, possibly hindering your ability to qualify for a loan!

The changes are an effort by Fannie Mae to demonstrate how they are tightening their belt on lending practices and borrower fraud, and will also require lenders to additional verification of buyer occupancy plans as well.

Questions? Thoughts? Please comment below or email me at Michael@greenDCrealty.com