Totally plagiarized from Mark Miskiel.

Hey all,

If you have a transaction in the queue or a potential transaction that is ready to come together, you may wish to mention this to your clients to PROTECT YOUR TRANSACTION.

As black Friday approaches and the Christmas shopping season starts, caution your clients to resist the store promotions where you open a new credit account and get a big discount at the register for doing so.

While it may be tempting to take advantage of the in store promotion, opening that account could potentially harm their credit score enough to preventing closing their mortgage loan or making their pre-qualification null and void.

Opening “New Credit” accounts can impact a borrower’s credit score up to 85 points because the credit bureaus take the following into the consideration.

Number of recently opened accounts
Proportion of newly opened accounts to all open accounts
Number of recent credit inquiries
Amount of time since the recent inquiries

It’s no news that mortgage lenders have been increasing the minimum credit score to obtain a mortgage. Also, there is a new requirement for the lenders to pull a “soft” credit inquiry right up to the point of funding the loan to ensure the borrowers credit profile has not changed. While the in store promotions may look great, the borrowers may want to carefully consider if accepting such a promotion is worth the risk of no longer qualifying for a mortgage.

I am here to help if you have questions about this or other lending topics.

Happy Holidays!

Mark A. Miskiel - Residential Lending Specialist
The Lending Company – Verde Valley
Office: (928) 634-7987 (rings to cell when out of office)
e-Fax: (480)-371-1150
www.Lender4you.com
NMLS # 198563
Not all loan officers are required to be licensed.
I am proud to be a licensed loan officer!