Mortgage docs - explanatio
n of inquiries ??
10-22-2010 07:06 AM
I'm in the midst of applying for my first mortgage loan. So far, things are going good - the pre approval went smoothly (after I scrambled to have the "dispute" comments removed).
I haven't made an offer on anything yet, but it is definitely on the horizon. To prepare, my LO (going thru WF for 203k rehab) gave me a "document checklist". Most of the items on there are standard - W2's, paystubs, bank statements, etc.
But, there is one item I'm a little concerned about. They want an explanation for inquiries on my credit reports. There are 3 in total - HSBC (7/2010), Alliant CU (8/2010) and Citi (9/2010). I can explain them away, no problem.
My question is, does this raise a red flag for underwriters? Also, is there anything specific I should say in the letter?
All they are asking for is the purpose of the inquiry and whether an account was opened. For HSBC, no account was opened. For Alliant, I refi'd my car and got a $15k visa (zero bal). For Citi, I opened a $4.9 CL CC ($300 bal). I guess I'm wondering how much more I should say besides the facts (ie, should i rationalize or promise to keep the balance at zero).
Starting Score: 3/2010 - TU = 635 EQ = 620
Current Score: 10/2010 - TU = 699 EQ = 743 EX = 709 (LO pull)
Goal Score: 1,000,000
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