Living Littleton

In their continuing quest to cut their losses by cracking down on sloppy underwriting for loans, Fannie Mae has instituted a new policy of ordering a second credit screening right before closing.  This last minute check will be to determine if the borrower has obtained, or even shopped for, additional credit.  It’s not unusual for Littleton and Denver new homeowners to shop for new appliances, new home furnishings, autos, new credit card, etc, however, opening these new lines  has the potential to stop the closing until the lender can do a full research and review on the borrower’s credit. 
Jerry Becker
jbeckerhomes@comcast.net

If you’ve actually taking out a new loan it may be large enough to put you over the top on your qualifying ratios.  This could kill the purchase.  Avoid the temptation to apply for a new credit when you go shopping for those home improvement items until after the home closes.  It’s OK to look, just make sure you don’t apply for credit so you’ll be ready to go when the homes closes.  Your lender can give you more information on this.

     Contrary to what you’ve been hearing, it’s still possible to buy a home with nothing down.  These are thirty year fixed rate loans with no Private Mortgage Insurance (PMI), and they are at market rate or below.  These aren’t only for first time buyers, either.  I’m one of the few Realtors in Denver that know about this program.  It’s not brokered through other mortgage brokers, so the odds are you lender hasn’t heard about it.  If you want to find out more about these loans go to www.toogoodtobetrueloans.com, then call me so you can take advantage of some of the great bargains out there.