Effective June 1, 2010, Fannie Mae will begin requiring afinal credit check just before closing and funding on a new mortgage.
If new loans existthat are sizable enough to affect the debt-to-income ratio calculations used in the original mortgage approval, the whole deal could fall through.
Alternatively, if the credit score has dropped below the minimum requirement for the loan, the deal could fall through.
Credit reporting is like a snapshot on a given day, so scores tend to fluctuate from day to day. A buyer could potentially have a 620 score on day of application and a 619 on closing day, rendering them ineligible for financing, for example.
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