I talked about this last week, and it’s very important, I’m passing this message from one of my preferred mortgage brokers, regarding rechecks of credit once more.
Effective on all applications taken after June 1st, we are required by FNMA (Fannie Mae) to initiate several additional checks (please read LQI FAQ attached) including a re-check for any additional/undisclosed liabilities as of the date of funding. All of my new loans will include the following attached disclosure. In addition to the disclosure, it is very important that we both make sure that the buyers should not incur ANY new liabilities no matter how small until after RECORDING to ensure that their loan approval remains in effect. My company will check both the Verification of employment (VOE) and re-run the credit ON the day of funding.
This re-check for additional/undisclosed liabilities is for all conventional loans. But we should send this message to all of our buyers.
Here is the worst case scenario in my book: Our buyers have signed the loan docs, we have lifted all contingencies...we check the VOE and credit, the score is lower and we can't fund the loan... Our buyers looses their new home and the deposit...WOW!