topic Re: Does credit get pulled again prior to closing with FHA? in Mortgage Loans

Does credit get pulled again prior to closing with FHA?

gsarah18 — Thu, 22 May 2014 18:51:45 GMT

I was pre approved on March 31st. Found a home and submitted an offer on May 15th and offer accepted on May 16th. Home inspection done on May 20th. We are expected to close June 20th. I'm wondering if it is common for a lender to repull my credit prior to closing. First time home buyer and have worked very hard to get here. I've already signed the re-disclosures and have my loan locked the other day. The lender has not mentioned another pull. Any advice is greatly appreciated. I apologize if I left out any information.

Re: Does credit get pulled again prior to closing with FHA?

TimeToRecover — Thu, 22 May 2014 19:13:28 GMT

I don't know if it is just my lender but he said each report is good for 120 days. if it is true for you as well you will be close to that 120 day point. I also have read on here that many lenders pull just before closing just to make sure nothing has changed.

Re: Does credit get pulled again prior to closing with FHA?

gsarah18 — Thu, 22 May 2014 19:32:13 GMT

Thank you for that information.

Re: Does credit get pulled again prior to closing with FHA?

srchick — Thu, 22 May 2014 19:45:33 GMT

Absolutely they pull again! Having experience as a loan processing assistant to a mortgage broker, and personally when buying a home, credit being pulled again prior to funding is a norm for the industry. It's mainly to determine whether you have incurred additional debt during the loan approval process that would affect your DTI ratio in regard to being a homeowner. I always counseled clients to not incur ANY debt or go anywhere near new cc's while completing the loan process. When you hear the magic words "Loan was closed and funded", and you receive your new keys, THEN go and get the new stuff!

Re: Does credit get pulled again prior to closing with FHA?

TimeToRecover — Thu, 22 May 2014 19:49:22 GMT

With mine being so far away I ahve started a "fantansy" list. I go to the stores and do good old fashioned window shopping.

Re: Does credit get pulled again prior to closing with FHA?

CreditHealthy — Thu, 22 May 2014 19:52:46 GMT

Hello, congrats on your new mortgage app. Although I haven't been through the process of obtaining a mortgage yet, I have been lurking and participating with the good folks of the forum for quite sometime now, it looks like they will do another pull right before...good luck!

Re: Does credit get pulled again prior to closing with FHA?

gsarah18 — Thu, 22 May 2014 20:00:52 GMT

Thank you everyone for this insight. Do they normally pull right before closing? I can breathe a little easier now lol

Re: Does credit get pulled again prior to closing with FHA?

Peter1142 — Sat, 24 May 2014 18:09:18 GMT

Yes they absolutely pull again before closing, but it is a soft pull, and a score is not obtained. They are only looking for major changes (which includes new inquiries which will need to be explained, new accounts, and new derogatory items,) and will not look at your score and other qualification issues unless they are present.

Re: Does credit get pulled again prior to closing with FHA?

itzateach — Sat, 24 May 2014 19:09:29 GMT

My lender says NO. That the report is good for 90 days. I am closing June 25th and no pull here.

Re: Does credit get pulled again prior to closing with FHA?

Peter1142 — Sat, 24 May 2014 19:30:28 GMT

Your lender is probably mistaken. They will also call your employer again. That one is guaranteed.

Credit SCORE is good for 90 days... report is usually not. They told me this too but still repulled my credit (SP) and called my employer again. Fannie Mae requires this in the loan quality initiative now, which AFAIK applies to FHA insured loans.

If there is nothing new on your credit report you have nothing to worry about.

Re: Does credit get pulled again prior to closing with FHA?

StartingOver10 — Sat, 24 May 2014 20:05:15 GMT

@Peter1142 wrote:
Your lender is probably mistaken. They will also call your employer again. That one is guaranteed.

Credit SCORE is good for 90 days... report is usually not. They told me this too but still repulled my credit (SP) and called my employer again. Fannie Mae requires this in the loan quality initiative now, which AFAIK applies to FHA insured loans.

If there is nothing new on your credit report you have nothing to worry about.

^^^Exactly correct. Well said Peter.

Re: Does credit get pulled again prior to closing with FHA?

montana586 — Tue, 27 May 2014 13:15:11 GMT

I beg to differ with the general consensus of the crowd. When I closed with chase last September there was neither a soft pull nor a hard pull at closing I kno this because I checked my reports before I applied for my lowes card

Re: Does credit get pulled again prior to closing with FHA?

TimeToRecover — Tue, 27 May 2014 13:29:14 GMT

@montana586 wrote:
I beg to differ with the general consensus of the crowd. When I closed with chase last September there was neither a soft pull nor a hard pull at closing I kno this because I checked my reports before I applied for my lowes card

What was the time between the initial credit pull and the closing. This is quite relevent to the question.

Re: Does credit get pulled again prior to closing with FHA?

Anonymous — Tue, 27 May 2014 17:12:31 GMT

I hope this is true. I'm so nervous that they'll pull my score again before we close July 1, even though we just had it pulled May 8th.

Re: Does credit get pulled again prior to closing with FHA?

tooleman694 — Tue, 27 May 2014 17:30:20 GMT

My credit was only pulled once, it was 45 days from when they first pulled my credit till we closed.

Re: Does credit get pulled again prior to closing with FHA?

cclee — Tue, 27 May 2014 18:50:31 GMT

I had a soft pull the day of funding, which was 2 days after closing. I was told in advance that there would be a soft pull to check for new credit (not scores).

Re: Does credit get pulled again prior to closing with FHA?

tooleman694 — Tue, 27 May 2014 19:28:41 GMT

Our funded at closing.

We closed and made a stop at Lowes on the way home.

Re: Does credit get pulled again prior to closing with FHA?

juggalo9er — Tue, 27 May 2014 20:41:45 GMT

my credit pull was 47 days before closing and the loan was funded at closing. I had my credit pulled one time (never a soft pull). As a matter a fact after the initial pull i refi'd a car and obtained a few 5k plus cards. Immediately after closing i apped lowes(approved), wal mart(approved), and discover (denied) with no real problem. i should mention that in the refi my dti was lowered significantly

Re: Does credit get pulled again prior to closing with FHA?

fixmycred14 — Wed, 04 Jun 2014 15:14:22 GMT

Hello Everyone --

My home will not be complete until sometime between October - December. When will they repull my credit and schedule closing?

I have not opened any new accounts or anything but I have made use of existing credit. Should I be worried? I got overly excited...

Re: Does credit get pulled again prior to closing with FHA?

3Pelicans — Wed, 04 Jun 2014 15:52:55 GMT

From my current experience (first time buyer) my credit was hard pulled at pre-approval in February, and again when my mortgage contingency was due one month ago. We had a long closing due to seller request (they needed to find a house). My LO said they would do a soft pull within 10 days of closing to make sure I didn't incur new debt or charge up my credit cards. Soft pull happened yesterday - closing confirmed for Monday.