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Registered: ‎06-11-2012
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USDA Guaranteed conditional commitment vs loan note guarantee

Our loan package was submitted to USDA for a conditional commitment on November 8th (today they are reviewing files received on November 6th—so we’re getting super close). My hopes are that we’ll close next week with the lender; my understanding of the process is that after we close, the lender will return the conditional commitment to USDA to receive the loan note guarantee—and that this step really just involves the lender and USDA…I’ll already be closed with keys in hand. Here’s my issue…the conditional commitment from USDA states “A Loan Note Guarantee will not be issued until the Lender certifies that there has been no adverse change in the Borrower's financial condition, nor any other adverse change in the borrower's condition, for any reason, during the period of time from USDA's issuance of this Conditional Commitment for Guarantee to issuance of the Loan Note Guarantee regardless of the cause or causes of the change and whether the cause or causes of the change were within the Lender's or Borrower's control. The Lender's certification must address all adverse changes and be supported by financial statements of the Borrower and its guarantors executed not more than 60 days before the time of certification. As used in this paragraph only, the term ''Borrower'' includes any parent, affiliate, or subsidiary of the Borrower”. The USDA office in my state is literally a month behind on loan note guarantees to the lender (after closing). My assumption is that this form will be sent to USDA with all closing stuff  a few days after the conditional commitment is issued. Does anyone know or have experience with what happens in the interim? I’m a student, so a new student loan will be added to my credit report around the end of December. My tuition is employer reimbursed after the fact, so I could make arrangements to reject the loan if necessary. I guess my real question is will my credit be re-pulled between signing the closing documents and USDA reviewing the closing file or will it be re-pulled by the lender when they send the final loan note guarantee to USDA next week? Thanks much Smiley Happy

Starting Score: EQ 559 (June12)
TU 651 (spouse) (June12)
November12 score (Equifax myfico):
Me: 646
Spouse: 691
Getting ready to close on our first home Smiley Happy
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