03-28-2012 01:08 PM
Help! I'll be applying for a mortgage and I have no idea how this process works! I have a lender in place who has a life-long personal relationship with my family but they have not hard-pulled my credit just yet. I'm assuming they will hard pull all three bureau's, correct? Since I have the lender already (Private Bank), will it be just one single hard pull on all three ? They won't be rate shopping me because I already have the bank?
Here is my profile:
TU - 749 FICO
5 inq's in the last year (one on 4/28/11, three in 11/11, and one on 3/25/12)
4 credit cards with total balance of $500.00 out of $10,000 in available credit so approximately 5% UTL. However, one card has not hit yet as I was just approved on Sunday and it has not arrived. Without that card reporting, I'm at 17% UTL ($500 balance out of $3000).
AAoA = 5 years
EQ - Unknown FICO but similar profile. Last recorded FICO was 679 but one baddie has since deleted and utl dropped tremendously. Only difference is 3 inq's (one on 4/28/11, one of 8/2011, and one of 11/11). Also my last baddie is under investigation but scheduled to be deleted next week. I'll be 100% clean then.
EX - Unknown FICO but same profile. Only difference is 2 inq's (one on 4/28/11 and one on 11/11). Also last baddie is still under investigation but scheduled to be deleted next week as well. I'll be 100% clean then.
Will the 5 inq's on TU screw me? Or the 3 new CC accounts since November? I'm putting down 20% (it's a gift from my father) and the purchase price will be approximately $239K - $250K. My income is 50K btw. Any thoughts on what type of interest rate I can expect and whether or not I'll be okay with all the new accounts and hard inq's?
03-28-2012 01:14 PM
Before you start anything, you might want to let your lender know that you just applied and got approved for a new credit card in the last few days and see what he says. Generally they don't react too favorably and you usually don't want to apply for any new credit or loans, 6 months prior.
If it's a private bank, they won't be shopping around, they will just use their specific bank's rate.
Follow my financial journey: http://www.frugalrican.com
03-28-2012 01:40 PM
Eek! I'm screwed!
03-28-2012 06:03 PM
ANDREW!! You are NOT screwed. You have good scores. Your dad's giving you some serious cash. As long as your DTI fits you will get that loan and I just know it for sure. How many posts about mortgages have I read around here? Check out the stats if you need that much reassurance.
Those inquiries will be easily explained to the lender via "letter of explanation." NO BIG DEAL. (Just don't carry a balance).
Trust me on this one.
03-29-2012 04:45 AM
Your fine. I got a new credit card a month before apping and the bank didn't care. What I would do is wait until the card reports before apping. Having a new card report after your initial app makes UW get really really nervous. As long as it's on your report for the intial app your fine. INQ's before apping are way way overblown, it's not that big a deal other than it lowers your score.
03-29-2012 07:33 AM
Thanks everyone! The last baddie on EX was deleted yesterday so both TU and EX are 100% clean. Both FICO's should be 750 right now. My EQ is still investigating but that should be 100% clean as well. I'll definitely wait till the Mileage Plus card hits my reports. Hopefully it's soon.....they sent me the card yesterday so I should have it Saturday or Monday. Not sure how long Chase takes to report but hopefully it's soon.
I can't believe I'm actually going to be able to get a mortgage. It's just mind-blowing to me! I owe this site so much!
03-29-2012 07:35 AM
Chase reports a day or two after the statement cuts.
After that, go visit that bank, and let us know how it goes.
I didn't mean to alarm you, btw, and say you were screwed. Just because you apped for a card before you go for a mortgage doesn't mean the end of the world.
Just please, if you get approved, don't go and buy new furniture on credit or buy a new car before closing.
Follow my financial journey: http://www.frugalrican.com
03-29-2012 01:20 PM
Haha I will definitely not be doing anything until after it closes! Infact, I won't be doing much of anything period!
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