topic Re: Just signed a new Construction contract in Mortgage Loans

Just signed a new Construction contract

Chanduwar — Wed, 14 Sep 2016 02:30:04 GMT

I just signed a new construction contract. The builders have said that they will deliver by mid May next year. Since closing may not be done till April/May what are the expectations of me.

Do I have to maintain my credit?

I know I will not be making a big purchase during this period but what sometimes going over by a little credit usage?

How many times will my credit be checked between now and closing? The lender said till February they will not be checking credit.

Re: Just signed a new Construction contract

Anonymous — Wed, 14 Sep 2016 14:26:45 GMT

Congrats on the contract. Yes, you do have to maintain credit and a little credit usage will not hurt as long as you are not late on payment among others. How many times your credit will be pulled depends on the lender between now and closing.

Most lenders often softpull to make sure nothing has changed in your credit file.

Re: Just signed a new Construction contract

Chanduwar — Wed, 14 Sep 2016 19:27:58 GMT

Do they keep checking credit, means for almost 9 months they will continously check credit?

What if my usage goes up and down constantly? New buyer

Re: Just signed a new Construction contract

DallasLoanGuy — Wed, 14 Sep 2016 21:17:00 GMT

basically, your loan will start in February.... so that will be new credit and all income/asset docs/etc at that time

Re: Just signed a new Construction contract

Chanduwar — Wed, 14 Sep 2016 21:25:24 GMT

So till then not to worry much if I my credit usage goes up slightly? Currently the credit usage is 27%

Re: Just signed a new Construction contract

DallasLoanGuy — Wed, 14 Sep 2016 22:30:58 GMT

@Chanduwar wrote:
So till then not to worry much if I my credit usage goes up slightly? Currently the credit usage is 27%

they will pull new credit 30 days before completion most likely.

and again right before close.

the pre-approval isnt good for this long.

so, technically, you could use the credit card and pay it back down.

Re: Just signed a new Construction contract

Anonymous — Fri, 16 Sep 2016 21:56:57 GMT

@Chanduwar wrote:
So till then not to worry much if I my credit usage goes up slightly? Currently the credit usage is 27%

Not sure what your credit scores are but just throwing this out there...

Since your only at 27%, why don't you pay off your credit cards by then that way you can increase your fico score and in turn get the lowest APR?