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Applying for credit after closing but before funding? Ok to do?

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Valued Member

Applying for credit after closing but before funding? Ok to do?

I need a Lowes Card . I'm closing on end of Nov .I know to wait until after I close to apply but should I be concerned about the funding of the loan? I mean after closing it takes 3 days to fund the loan. This is a USDA guarenteed loan. Would applying for credit after close but before funding cause it to be recinded?

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Super Contributor

Re: Applying for credit after closing but before funding? Ok to do?

It could cause problems, yes.  Best advice is to wait until the home is legally yours (after funding, it then needs to record with the county) and then you can go hog wild with new credit applications and the lender won't care.  Up until then, you are under a microscope, including after you sign and before the loan funds.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

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Regular Contributor

Re: Applying for credit after closing but before funding? Ok to do?

1,000%%%

 

I'm not even letting thing report a balance!   And I set my closing into Jan so no apps, no letting balances report---not wanting to show any activity at all on my reports between app and close (other than B* more INQs off in hope for a couple point bumps).

 

My lender pulled EX so they saw 13 INQs, but by Jan they'll see 6 and by April there should only be 2, counting the additional hard pulled for the closing.  Lender never did look at EQ and TU showed 9 at app, but should show 0 at closing by the time they get to it.

 

I want to also close 2 cards but I'm terrified of any change in score that could cause a re-pricing of the loan... like the lender coming back and asking for points, etc.

 

 

Can't wait til closing when I can close the accounts at all my daily pullers and close my two crappiest cards, and by Dec I'll have 0INQ all the way around and zero baddies---a perfectly clean file with a real estate account.

EQ: 801!
I got one foot in the 800 Club, now I need the other two feet.
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