Accepted 2 credit card offers after mortgage approval....advice needed

[Anonymous]

I just received final approval for my mortgage and should be closing within the next month.  It is new construction.  I was told that all my documents would be good until 7/16/16.  I did not realize that they do a soft pull immediately prior to closing. 

My dilemma is that since after that time, I have 2 hard inquiries on my report and opened a chase sapphire preferred and a PenFed amex.  Both have zero balances. 

Will this kill my closing date?

Can I cancel them to avoid any drama before closing.

I just recently found this group and would appreciate any advice given.

Thanks!

[Anonymous]

Probably not a great decision on your part but no one knows your credit profile.

Talk to your LO and get his advice.

[Pway]

Cancelling the cards will do nothing.  The credit card companies will not remove the HP's as you agreed to them pulling your credit for their products.  You already have taken the two hp's on your credit file.  You can only hope for the best.  I really don't know because I am not a LO or work in that field.  However, they could pull the loan, at worst. 

[Anonymous]

Do not use them, and tell your LO. Most likely will just need an LOE if there is no new debt.

[BrianB_The_Loan_Professor]

If the bank sees new inquiries it will be concerned with undocumented debt - if you have used the card they will need something showing a balance and the payment - the payment will then be added in to your loan and they will look to see if the debt to income is still eligible

If you havent use the card and the soft pull doesnt show the new cards reporting they will simply ask you for a letter explaining what the inquiries were and that they did not lead to any new credit debt - 

Not the end of the world but probably not something you should have done given the timing of it all 

Underwriters hate surprises - so I agree with the above post - dont use the cards

Good Luck

BrianB

[Anonymous]

Would it be best for me just to close the accounts to show that there is no debt?  I can explain the hard inquiries as my ignorance  looking for a 0% balance transer card.  I'm just super nervous about this...  thanks!

[Dw4250]

Not a prudent move at this time, but what's done is done. No use crying over spilled milk. Call your LO right away and tell him/her what happened and follow their advice. Early intervention is best (vs them pulling your credit and finding out that way).

Didn't they warn you to not do any credit applications while going through the mortgage process? Most LO pound this into the skull of every customer.

Anyway good luck...hope it all ends up being OK.

[Anonymous]

So, I haven't been able to reach my loan officer by phone so I have drafted the following letter and would appreciate any feedback on it.  Hopefully, she will call or read the email in the next several days.  Here's the letter.... Thanks in advance everyone!

Hello (Loan Officer),

This is (Jon Doe.)  I hope you are well!

Thanks for letting us know that the final paperwork has been approved by the underwriter!  I have a quick disclosure for you.  I wanted to let you know that there will be 2 additional inquiries if the credit is pulled again.

Shortly after being approved by underwriting, I received preapproval offers for PenFed credit union and a Chase card.  Both cards offered 0% balance transfer which I was anxious to use.  So without thinking it through,  I accepted the offers and both applications were approved.  I wanted to let you know so that there are no surprises before the final closing.  Both accounts have zero balances and my plan is to close both.   Hindsight is 20/20 and if I had to do it over again, I would most definitely not have done so.

I have already written a Letter of Explanation for this situation and will happily forward it along if needed.

Thank you so much for all your help through this lengthy process.  I look forward to your response.

Sincerely,

Jon Doe

[StartingOver10]

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@Anonymous wrote:

So, I haven't been able to reach my loan officer by phone so I have drafted the following letter and would appreciate any feedback on it.  Hopefully, she will call or read the email in the next several days.  Here's the letter.... Thanks in advance everyone!

Hello (Loan Officer),

This is (Jon Doe.)  I hope you are well!

Thanks for letting us know that the final paperwork has been approved by the underwriter!  I have a quick disclosure for you.  I wanted to let you know that there will be 2 additional inquiries if the credit is pulled again.

Shortly after being approved by underwriting, I received preapproval offers for PenFed credit union and a Chase card.  Both cards offered 0% balance transfer which I was anxious to use.  So without thinking it through,  I accepted the offers and both applications were approved.  I wanted to let you know so that there are no surprises before the final closing.  Both accounts have zero balances and my plan is to close both.   Hindsight is 20/20 and if I had to do it over again, I would most definitely not have done so.

I have already written a Letter of Explanation for this situation and will happily forward it along if needed.

Thank you so much for all your help through this lengthy process.  I look forward to your response.

Sincerely,

Jon Doe

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Closing the accounts doesn't undo the damage you have done by opening the accounts. Why don't you just leave them at zero until you close on your home? Other than that I think your letter is good.  In fact, I thnk if you close them it will do more damage to your CR.  Just stop messing with your CR - leave everything alone. Go back up and re-read dpeezy's post. He is a LO in CA and knows this process.

[Anonymous]

Thanks for the response, I will remove the portion you highlighted.  I just figured since the credit lines were fairly high (Chase 27k and PenFed 15k) that it would be better to close them.  I am not going to fiddle with my credit anymore.  Thanks!