Va loan question

[solox]

my newest credit card hadnt yet showed on my credit report when the lender pulled my report. That card has a limit of 8500. The two cards I cancelled did show on the initial credit pull. Those cards both had a limit of 300 dollars. What do you think.

[pizzadude]

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@solox wrote:

my newest credit card hadnt yet showed on my credit report when the lender pulled my report. That card has a limit of 8500. The two cards I cancelled did show on the initial credit pull. Those cards both had a limit of 300 dollars. What do you think.

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You'll have to explain it to your LO ~ underwriters don't like you applying for new credit during the loan approval process.

In your case it hopefully won't be an issue since you had already applied for the CC but it just hadn't shown up yet.

[solox]

Ok. Thanks for the information. I guess now I just have to wait and see. My 10 day home inspection starts today. Im getting pretty nervous as the days go on. Hopefully this being a VA loan these issues wont be a big deal. Ive done google searches for people getting rejected in the UW stage due to opening up new credit cards. I havent found any. Just rejections for people creating more debt with car loans and such. Hopefully Ill be alright.

[Erinkkelly]

I would stay on top of your lender and make sure everything on on track with the closing date...mainly because I'm worried if your credit is expires and they need to pull an new one, your scores might be lower if they have updated to the credit reports.

Now 5 days before closing the lender doesn't pull a new credit report, just an update or a refresh. All debts and accounts are updated to the most current balances based on any new infomation that reported. We update your balances and check for inquiries to see if you opened a new account. If a new account was opened we need to document that account and add into into your debt ratio. A new credit score is not obtained on this refreshed report. Well depending on how tight your debt ratio is now makes the difference. I've seen if someone already has a debt ratio at 45% which is high and then they open an account for just $50 bucks a month it can push them over. Its all based on your monthly debt payments. But it sounds like you don't have much debt so you should be okay...just make sure you close before your credit expires! 

[solox]

I shouldnt have a problem closing before my credit report expires. So with my newest credit card, It hadnt posted to my credit report when they first pulled. When they when they pull it again it will show but theres pretty much no balance on it. How much impact do you think that will have?

[Erinkkelly]

An inquiry will show up on the refreshed report...the lender will ask if you opened an account if it isn't reporting to the credit bureaus yet. If there isn't much of a balance on it shouldn't be a big deal. You may have to provide a statement or something showing what the balance and payment are. It happens often and isn't a huge deal.

[solox]

Thanks for the reply. Apparently that credit did show up on my credit so It looks like it wont be an issue. My home inspection is the 19th. Hopefully all goes well.