‘Under Contract’ but the closing is delayed or cancelled?
Here is just one reason why:
New Fannie Mae mandates (FNMA LL-2010-03 Loan Quality Initiative) requires lenders to do a “credit re-pull” just prior to closing. If this updated credit report shows any change, the lender will re-underwrite, ask for additional documentation, suspend or cancel the loan closing.
So if your buyer applied for a pre-approval letter (which is based on the ‘credit report’) weeks before agreeing to buy your property, then several weeks later you are ready to close, the closing may be delayed.
March 23rd, 2011 at 9:37 pm
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