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Question about mortgage process on building new home

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grapegravity

Shiny_Rock
Joined
Nov 24, 2003
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I''m just wondering if the lender will do another credit report of the borrowers prior to the possession of a new contruction?

Have anyone hear any stories that the mortgage on a new home was approved at the time of purchasing the new home and declined one month before the possession date because of the credit report?

Thanks~~~
 
Has anyone heard? Sure. Especially in this (credit) market.

For the case in question, my friends'' credit scores had not changed, but the products for which they qualified kept being yanked from the market due to tightening standards. They had to switch loan products three times in the final three months on their new-construction home, and at each time their credit was re-run.

Of course, because it happened to them most certainly does not mean it''ll happen to you. If your question, however, is one where your FICO score has/will declined before closing and whether someone along the chain of the loan will run another check, it depends on the prudence of your lender-- they *should* check it, but perhaps someone who currently works in loan processing can supply a behind-the-scenes perspective whether that will happen now. HTH!
 
I'm sure it happens fairly frequently in this market. I know with our house (which wasn't a new build and they are even stricter with new builds) they checked our credit report again just days before closing. Our agent says it happens all the time that people who just barely qualify will then think they are ok since they were approved, go on a spending spree, and then not qualify and lose the house in the last days before closing.

We just bought ours a few months ago-so I am sure they are still being just as prudent. We had to jump through MANY hoops right before closing-and we were well qualified for our loan amount.
 
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