topic Re: Charging on exising accounts before closing in Mortgage Loans

Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:04:04 GMT

We need to buy a new refrigerator. I found one that matches our other appliances for a smoking deal at best buy, and delivery available the day after closing (4/29). My LO says I am okay to charge this on our existing best buy account, just do not open new accounts anywhere. I am so scared to believe her though. Would you???

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:07:33 GMT

When does the CCC report to the CRAs and is the LO doing another pull on closing?

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:11:14 GMT

What will it do to your utilization? Could it lower your credit score? Will it impact your DTI?

I've seen it happen more than once that an LO gives incorrect infromation and then say oops.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:12:27 GMT

I would not do it, personally.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:14:08 GMT

The statement for the account cuts May 8, more than a week after we close.

She said we are fully approved and the title company has our documentation, but that they do a random credit check (meaning they may not check at all):

Don’t open any new accounts. On a conventional
loan we can pull credit again right before closing, what they are looking for is
new debt, we don’t re-check current balances.

I know from reading this I should trust her and we will be okay but I have been SO careful for SOO long now (new build) that it gives me minor panic attacks even thinking about it.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:37:40 GMT

You still have some uncertainty as to whether getting this refrigerator would potentially screw up the loan. Not getting the refrigerator means there is no uncertainty. Since I'm a fairly conservative person, I wouldn't do it. But not everyone looks at the situation the same as I do. lol.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 17:46:27 GMT

Ahhh I am so torn. I have the screen ready to go but just can't do it! haha! What sucks is that it says first delivery date is a week from now, so that means if I wait until after we close I have to go without a fridge for a week. BOOO. First world problems, I know

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 18:13:19 GMT

Any way you can use a relatives card and pay them back or something? Personally I woultn'd risk it...Id rather go a week without a fridge then worry from now until May if it will somehow screw you up.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 18:14:49 GMT

I could pay for it in cash, but we planned on using the cash we have for other things and taking advantage of the 0% interest.

Re: Charging on exising accounts before closing

Adalen — Fri, 19 Apr 2013 19:14:45 GMT

Not worth it. If you can pay cash now and put other things on credit later, do it that way. Otherwise, Memorial Day is around the corner, there will be more sales.

Re: Charging on exising accounts before closing

tooleman694 — Fri, 19 Apr 2013 19:19:21 GMT

We bought our fridge at lowes hours after we closed and we got it the next day.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 19:57:04 GMT

@Anonymous wrote:
that means if I wait until after we close I have to go without a fridge for a week.

Why? Plenty of places to buy a fridge from, and most will deliver within 2 days.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 20:26:47 GMT

@Anonymous wrote:
@Anonymous wrote:
that means if I wait until after we close I have to go without a fridge for a week.

Why? Plenty of places to buy a fridge from, and most will deliver within 2 days.

Well I was looking at Best Buy. When I choose the fridge I want the next available ship date is 4/25. I called the local store and asked them if they offer next day delivery and the guy was like "uhhh, no" like I was crazy or something I know other places may offer this, but HD and Lowes both are $500+ more expenive than Best Buy right now. I am thinking I might just use some of the cash we have and buy it now, and charge something else later if I have to.

Re: Charging on exising accounts before closing

Anonymous — Fri, 19 Apr 2013 20:32:45 GMT

Do they offer layaway?

Re: Charging on exising accounts before closing

Anonymous — Sun, 21 Apr 2013 03:39:24 GMT

I'm going to side with your LO. If I remember correctly, your score is in the 700's and your rate is locked. If Best Buy doesn't report until May 8th and you close before then, you are all good but if your closing is delayed and they repull after May 8th, to respond correctly to this scenario, I need to know the following things:

1. What is your current Best Buy utilization before the frig plus your credit limit on that card?

2. What is your total credit limit across all cards and how much are you using total right now as shown on your credit report excluding the frig?

3. What is your mid qualifying credit score and the lender minimum score required?

Re: Charging on exising accounts before closing

Anonymous — Sun, 21 Apr 2013 14:25:40 GMT

Thanks MF, I went ahead and just paid cash for it plenty of other stuff to charge after closing!

Re: Charging on exising accounts before closing

Anonymous — Sun, 21 Apr 2013 16:44:57 GMT

You're welcome violet. Waiting is the safest scenario. I only charged regular everyday expenses on CC until after closing. After closing, I used a mix of cash and credit to get the furniture and electronics.

I wish you would have waited to pay cash! You could have gotten 2% or 5% cash back on your BB purchase using your card! You could have even made the charge to your BB card and paid it off immediately so the new balance didn't get reported and you would have gotten 5% back. I charged $3000 minus $700 cash to my BB card and I got 2% cash back ($55 gift certificate) with 0% APR for 24 months. Oh well, you did what you thought was best. Congrats on the new fridge!

Re: Charging on exising accounts before closing

Anonymous — Mon, 22 Apr 2013 17:14:18 GMT

I know, if I had used my Best Buy card I would have gotten almost $90 off. I was just too scared to even charge it then pay it off right away, I thought about it! I have washer and dryer and a new tv to purchase, I will slap those on the card instead

Re: Charging on exising accounts before closing

tooleman694 — Mon, 22 Apr 2013 17:30:07 GMT

Make sure its a Plasma

Re: Charging on exising accounts before closing

Anonymous — Mon, 22 Apr 2013 18:46:53 GMT

LOL! That sounds like a whooooole 'nother thread