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What exactly is a credit refresh/soft pull?

Valued Member

What exactly is a credit refresh/soft pull?

Some posts say the credit refresh just updates new inquiries and any currently reported balances on your credit report.

 

Others say it brings ALL CC balances forward so the lender can see at this moment how much you owe.

 

Does anyone know for sure? I generally pay all my cards down before they report but I'm scheduled to close before they all technically report again. 

 

*Side question*

When my app was filled out I owed a total of $1500 across 5 cards. Now I owe $1500 on 2 cards. I'm assuming this is a good thing as my monthly payments were reduced by $80/month, but I'm mostly wondering about my original question.


Thanks!

On the road!
FICO 8 6/15/17 EQ 591 // TU 570 // EX 606
MORTGAGE 6/15/17 EQ 579 // TU 483 // EX 529
FICO 8 11/15/17 EQ 645 // TU 626 // EX 654
MORTGAGE 11/15/17 EQ 620 // TU 596 // EX 671
Message 1 of 6
5 REPLIES
Valued Member

Re: What exactly is a credit refresh/soft pull?

No one here knows?

 

There are no lenders/underwriters/brokers... anyone on this forum?

On the road!
FICO 8 6/15/17 EQ 591 // TU 570 // EX 606
MORTGAGE 6/15/17 EQ 579 // TU 483 // EX 529
FICO 8 11/15/17 EQ 645 // TU 626 // EX 654
MORTGAGE 11/15/17 EQ 620 // TU 596 // EX 671
Message 2 of 6
Contributor

Re: What exactly is a credit refresh/soft pull?

https://creditcards.usnews.com/the-difference-between-hard-and-soft-credit-inquiries

 

 

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 3 of 6
New Contributor

Re: What exactly is a credit refresh/soft pull?

10 days or less from the date on the "Note" a credit refresh is required...

 

This is to see if you have obtained any new credit, OR have made any large purchases that would raise your payment amounts.

 

The purpose of this is to make sure that your "Debt to Income" ratios (DTI) are sill within the allowable guidelines... most of the time this is not an issue with small purchases, however it could be if your ratios are right on the edge.

(I've have had borrowers whose payments could not go up more than a couple of dollars or they wouldn't qualify anymore)

ALWAYS ASK YOUR LO BEFORE MAKING ANY PURCHASES.

 

If you have opened a new Tradeline account, you will have to document the new payment amount amount, and that could delay the close date.

 

Thanks,

Senior Mortgage Loan Officer in the states of Arizona & California
Message 4 of 6
Valued Member

Re: What exactly is a credit refresh/soft pull?


me12345 wrote:

10 days or less from the date on the "Note" a credit refresh is required...

 

This is to see if you have obtained any new credit, OR have made any large purchases that would raise your payment amounts.

 

The purpose of this is to make sure that your "Debt to Income" ratios (DTI) are sill within the allowable guidelines... most of the time this is not an issue with small purchases, however it could be if your ratios are right on the edge.

(I've have had borrowers whose payments could not go up more than a couple of dollars or they wouldn't qualify anymore)

ALWAYS ASK YOUR LO BEFORE MAKING ANY PURCHASES.

 

If you have opened a new Tradeline account, you will have to document the new payment amount amount, and that could delay the close date.

 

Thanks,


By note do you mean the pre-approval letter? So if the pre approval letter was good until February 26, 2018, but we are scheduled to close on our house on January 11, 2018, we wouldn't have a refresh? (Our letter was issued November 30th). We aren't planning to make any big purchases and will definitely not be opening anything new, just trying to get a feel for what is likely to happen. Thanks!

Starting:10/18/17: EQ~608 TU~612 EX~631
Current: 11/15/17: EQ~652 TU~689 EX~676
Goal: 700 Club
Message 5 of 6
New Contributor

Re: What exactly is a credit refresh/soft pull?

No, the "Note" is the "promise to Pay" or your loan re-payment terms....These are your loan docs that you sign at closing.

The refresh must be done within 10 day of the date on the loan docs...(Not when you sign)

 

Thanks,

Senior Mortgage Loan Officer in the states of Arizona & California
Message 6 of 6