Posts: 86
Registered: ‎06-14-2010
Mortgage docs - explanation of inquiries ??

Hi all,


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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