topic Re: Credit Check at closing in Mortgage Loans

Credit Check at closing

Anonymous — Fri, 06 Sep 2013 05:30:35 GMT

What are they looking for when they do a final credit check right before closing? what type of things can derail a mortgage? cc limit increses or balance increses? if so how much?

this is my situation. with a particular cc

when our credit was pulled the balance was $91(on statement)

we paid down to $10(on statement)

when they repull in a few weeks im guessing it will be $75(newest statement)

because the amt increased between the 2nd and 3rd month will it be an issue?

Re: Credit Check at closing

Anonymous — Fri, 06 Sep 2013 05:31:50 GMT

@Anonymous wrote:
What are they looking for when they do a final credit check right before closing? what type of things can derail a mortgage? cc limit increses or balance increses? if so how much?

They want to be sure that your financial situation hasn't materially deteriorated since the initial report was pulled.

Going on application sprees (opening many new trade lines), substantial increases in your balances owed, or the assumption of new debt, just as examples, can derail closing.

How much depends on the lender and where your front-end/back-end ratios are at.

Re: Credit Check at closing

Anonymous — Fri, 06 Sep 2013 05:33:09 GMT

I wouldn't worry about it. The balance has actually decreased since the initial report was pulled, and the amount owed is negligible to begin with.

Re: Credit Check at closing

Anonymous — Fri, 06 Sep 2013 05:34:54 GMT

thats what i was thinking. this is our first home loan so im sweatin everything.

It goes by the min payment correct?

Re: Credit Check at closing

Anonymous — Fri, 06 Sep 2013 05:41:10 GMT

It is calculated according to the required payment for each trade line reported by the creditor to the CRA, along with your expected mortgage (P&I, and escrows) payment.

Again though, we're talking about a balance that is less than $100, something that you could pay off at will were it to somehow oddly end up being a problem. I wouldn't sweat it, but if it honestly concerns you to the point that you are worrying about it, just pay it off. We're talking $75

@Anonymous wrote:
thats what i was thinking. this is our first home loan so im sweatin everything.

It goes by the min payment correct?

Re: Credit Check at closing

Anonymous — Fri, 06 Sep 2013 10:26:36 GMT

We went with a USDA loan , USDA does not check your credit at all and our bank said not all banks will do a credit check at close it just depends on the bank. Our bank does not re pull the credit at close. I would ask your LO and see if yours does? But I agree that a small amount isn't going to throw your DTI off so you should be fine.