Hey guys!
I'm new to this forum, and I was hoping I could get some advice.
My husband and I were not planning on purchasing yet, but when the perfect house came up for sale 4 doors down from his parents in our PERFECT neighborhood we couldn't resist. We got a preapproval from my lender, and we put an offer on the house. When they accepted our offer we got a pre qualification letter, after I had given our lender our paystubs and permission to pull our credit.
The inspection is done, the appraisal is ordered and we're on our way to underwriting. We're supposed to close November 29th. We're planning on going FHA, with down payment assistance. When the lender pulled my credit, my middle score was just barely above what it needed to be.
The problem is, I bought a car in October (like I said we were not planning on purchasing a home yet). My lender officially pulled my credit the 29th of October, so it wil show the hard inquiry from the car purchase. But I totally forgot that new debt doesn't show up on the credit until the financial institution reports it, which in my case happens to be the first of every month. So the new car loan was not reporting to my credit when they did the original credit pull, it reported 3 days later. As soon as I realized this I told my lender and he put it in the application and my DTI is still okay and I provided the CENOTE to my lender so he can add it to my file so that when it goes to underwriting they're not surprised and it doesn't look like I am trying to hide something.
What I am worried about is the soft pull they do the day before we close. It would be devastating if we made it that far to get denied, for both us and the seller. She needs this house to close as she is reliant on it for her own house purchase closing December 2nd. I absolutely freaked myself out and read a bunch of horror stories online about loans getting denied the day of closing because of new debt.
My lender is pretty confident that because we are preparing the underwriter to see this on the soft pull, they won't be surprised and it will already be in my application and DTI so they won't ask for another hard pull to show the actual credit scores.
Do you think that because we disclosed the fact upfront and we're DTI is okay, we'll be okay when they do the final soft pull? I know that the soft pull does not pull scores, but it shows balance changes. Buying a car is a pretty big balance change. Are they going to see that, because if they do I'm almost positive that my credit score will drop below the threshold I need for the program I'm using. I just wish they would do the soft pull sooner rather than later, so I could be my mind to ease but my lender said it's impossible. So we just wait until the day before closing.
Has anyone had a similar situation? Or any advice or just something to say on the subject? I would appreciate any and all feedback!
