"Don’t Buy That New Car/Boat/etc. Till AFTER You Close"

New Fannie Mae Credit Check

Planning on a(nother) major purchase, but haven’t closed on your home yet?

Better hold off.

That’s because Fannie Mae has just announced plans to pull Buyers’ credit a second time — this time, up until 5 days before closing (credit check number one is when the Buyer initially applies for the mortgage).

Home Buyers who splurge just ahead of their closing risk having their credit scores decline, which in turn could have disastrous consequences for their home purchase.

To take just one example, a Buyer who finances a new car purchase and whose credit scores fall from 685 to 675 as a result would suddenly have to boost their downpayment from 10% to 20%.

If they don’t have it . . . their home purchase could collapse.

Expensive new car, indeed.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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