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A new rule (Fannie) called Loan Quality Initiative went into effect on July 1, 2010 that requires lenders, BEFORE CLOSING, to check credit to make sure borrowers have not incurred any new debts. If borrowers incur MORE debt, and it affects the underwriting ratios by more than 2%, the loan will have to be re-underwritten prior to closing.

Things not to do before closing:
Don't – Allow multiple credit checks
Don’t – Apply for new credit within 45 days of signing a contract
Don’t – “Shop” for new credit before closing (Furniture, cars, etc)
Don’t – Go on a spending spree (using your credit limits) to buy things for your new home.

Things to do before closing:
Do – File tax returns and/or extensions
Do – Explain or document all inquiries on your credit report
Do – Disclose all debt—even if it did not show up on your credit report
Do – Work with a knowledgeable lender

Call Us Today for More Information!


	Leo Pacheco Loan Consultant Office: 530-683-4043 Cell: 530-409-7508 Fax: 530-683-4044 NMLS/CA-DOC #271747	lpacheco@lhfinancial.com www.HomeLoansbyLeo.com 3420 Coach Lane, Suite 9 Cameron Park, CA 95682


		This information does not represent an offer or commitment to enter into a loan agreement. Equal Housing Opportunity Lender. Rates, Program, Fees, and Guidelines are subject to change without notice. Not a commitment to lend. “The information provided has been based on rules and regulations issued by Federal Agencies and interpreted for you by MortgageCurrentcy.com. Interpretations are not guaranteed but we attempt to make them both easy to understand and help you sell more real estate. Check with your local and state authorities to ensure that you meet all requirements and disclosures.”Copyright © 2011 Reprinted with permission MortgageCurrentcy.com.The accuracy of all information, regardless of source, is not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. Land Home only conducts business in states we are approved to. Land Home Financial Services, Inc.3420 Coach Lane, Suite 9, Cameron Park, CA 95682. Licensed by the Department of Corporations under the California Finance Lenders law - #6073455. NMLS# 705400. CA-DRE #00988341. CA Department of Corporations - 916-324-6624. CA Dept. of Real Estate - 916-227-0931. Date: 10-12-12. Opt Out