As of June 1, 2010 Fannie Mae will require a 2nd credit report pulled on the actual day of closing prior to funding. This pull is to verify that the borrower's current obligations haven't changed. It was found that most foreclosures that resulted in the first 24 months was due to incurring new debt for the new homes. This is inevitably going to delay some closings. I encourage all buyers and sellers to keep their schedules open 3 days around the actual closing date. I cannot stress the importance of resisting temptation to buy anything for your home before funding.
If the credit scores drop more than 2% then it will have to go back to underwriting. If it drops below the allowed credit score then it will disqualify you form buying the house. Any new credit inquiries will have to be documented by writing letters. Simply applying for a credit card and not using it will force underwriting to add 5% of the high credit limit to the bottom line even if the card isn't active. If your debt to income ratio was tight then you could be turned down!
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