HELP! - Worried about final credit pull and increase CC balance.

[BrokeStudent2010]

For the most part my credit card balances have decreased during the home mortgage application process. However, I have one card that I increased the balance on by almost $1000, and it's now at about 70% utlization. I used this card to pay for things like the home inspection and other stuff. This card has a statement cut date of Sept. 20 and my closing is September 25th. What do you think the chances are that the new balance will show for this card when the bank does the final credit pull? Will this have an impact on the final loan approval?  I can pay $1000 on the card today from my bank account, but I don't want to touch those funds since I am so close to closing and I feel like the bank is going to want one more bank statement from me.

Any advice would be awesome.

[jadeite788]

The Lender actually has up to 48 hours  before the close date  to do a final credit pull.  After that they need at least the next two days process paperwork by the time they close, so basically they can do a pull either on the 23rd or I have heard on these boards that some do a pull a day before they close which in other words means the 24th of September.  This is why LO's tell you don't touch your credit card and don't put any new lines of credit during the month you are trying to close. 

hope this helps.

[BrokeStudent2010]

Thanks for the response. I guess my more specific question is whether this will cause the sale to fall apart or it's easily over looked.

[jadeite788]

Well a 70% Utilization can actually drop your score anywhere from 10-20 points .  So depending on when the statement due date is, where your middle score is now, can determine whether you qualify for a loan or what type of interest rate you get.  I hope this helps.

[BrokeStudent2010]

Ok, I decided to just bite the bullet and make a $1000 payment tomorrow. The statement will be cut on September 20, so I'm guessing it will report to the credit bureaus soon after that. I don't want to take the risk of my score dropping when I actually have the cash on hand to prevent that from happening. If I need to, I can always go back and use that card after I make the $1000 payment. I feel like credit scoring is such a game sometimes. They look at what is reporting on the day the statement cuts, but you can do all kinds of craziness in between. I just hope the mortgage underwriter doesn't hold the large payment against me if they ask for my bank account again. At least I can say that I was paying down debt.

[jadeite788]

i know, and it is a game. good luck

[foofighter74]

Your'e saying the utilization on that specific card is 70% but what did it do to your utilization overall?  Your money is your money, and if you have the ability to pay down some debt without compromising funds needed for closing or any reserves that are required, you shouldn't be hesitant to spend it.  Especially since the card charges were to pay for inspections and so forth you had to do anyway.

It's not like you charged $1,000 worth of clothes or furniture or whatever in the midst of an unneeded s hopping spree.

[BrokeStudent2010]

Just got the call today that my mortgage loan is approved. I'm elated! My closing is in 5 days and I was starting to get worried. As a first time homebuyer I've been very anxious about this whole process, but now I feel I can relax. 

[GoodMamaWorking]

Great! Everything should go well