CREDIT REPORTS: Just one is not enough when financing a home anymore.
Minneapolis, MN: Lenders review credit as a very important part of the approval process when buying a home. Typically this initial credit report has been valid for underwriting the mortgage loan for as long as 120 days.
During that time period, many things could have changed with the customers credit report that if known, would adversely effect the underwriting decision. New late payments, or new debt; especially common is new debt for furniture on the house they are about to buy.
Because this has been a major problem, Fannie Mae has recently issued new rules for lenders that include a second review of an applicant's credit report just prior to closing.
THE BOTTOM LINE is simple: DO NOT TAKE OUT ANY NEW DEBT from the moment you even start thinking about buying a home without consulting your mortgage loan officer as you face the risk of a last minute denial if any new debt or other changes occur to your credit profile.