topic Re: Did I mess up really bad? in Mortgage Loans

Did I mess up really bad?

Anonymous — Mon, 08 Feb 2016 17:20:07 GMT

Hello, I am panicking right now and need advice. I am looking to purchase a home this summer with a mortgage for the first time. I have been working on my credit for the last year. I won't get into my scores and everything...But in December, I came up short on cash, and I didn't want to be late on a bill. So I got the bright idea of taking a cash advance. (I know, the dumbest thing ever) Well, I didn't know that Advance America was going to pull my credit, and I now have that inquiry on my report.

Did I completely mess up? I am so scared that I will sell my current house, that I paid cash for, and I won't be able to be approved for a mortgage. How many months of inquiries do mortgage lenders look at? Oh please someone....make me feel better.

Re: Did I mess up really bad?

Anonymous — Mon, 08 Feb 2016 17:28:43 GMT

A hard enquiry usually has an effect on your credit score for about 6 months though it stays on the report for 2 years. Also the score might only drop around 5-6 points and recover within 6 months. So hopefully, it shouldn't be a big problem.

Re: Did I mess up really bad?

Anonymous — Mon, 08 Feb 2016 21:13:56 GMT

Oh goodness, we have our underwriters approval on our loan (closing March 11) and we had an inquiry on our report for a credit card back in September. They only asked for a Letter of Explanation. I would assume they will ask you for the same.

Re: Did I mess up really bad?

Anonymous — Mon, 08 Feb 2016 22:39:13 GMT

Ive always had a few inquiries on my report at home buying time without issues. Honestly I never even knew it was bad until recently.

Im sure you are fine.

Re: Did I mess up really bad?

cartwrna — Tue, 09 Feb 2016 01:04:49 GMT

Depending when you purchase, they may not even see it. Lenders only go so far back in regards to inquiries when getting a mortgage. My lender went back so far. They pulled my report December 29th, and inquiries from June 29th didn't show up. I believe they only went back 3 months. Another lender I started with also only went back 3 months. I had 2 other inquiries, both from rate shopping. I filled out a generic explanation sheet and just wrote rate shopping. Was never even brought up. Your fine!

Re: Did I mess up really bad?

Anonymous — Tue, 09 Feb 2016 03:47:53 GMT

@Anonymous wrote:
Oh goodness, we have our underwriters approval on our loan (closing March 11) and we had an inquiry on our report for a credit card back in September. They only asked for a Letter of Explanation. I would assume they will ask you for the same.

This +1. We're closing this month and had to provide a letter of explanation for some inquires last summer. Just be honest and all should be fine.

Re: Did I mess up really bad?

Anonymous — Tue, 09 Feb 2016 04:22:10 GMT

Thank you all for your feedback. I guess i was less worried about an inquiry and more worried about the type of inquiry, as you can see that it is for a cash advance loan. I plan to post all of my credit information soon. I plan to put my house up for sale within the month, and hopefully purchase in the summer time.