topic Re: Need a LOE for 25 inquiries in Mortgage Loans

Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 01:14:14 GMT

Im afraid..... i obatined the bulk of my inquires in May/June of this yr and one recent account with conns within the last 30 days because we needed a new tv. My utilization is 16% overall.... I was asked today by my loan officer to submit a LOE for 25 inquiries. I have mostly store cards and 2 credits cards all with low balances and limits. will this hurt me? It will take 6 months to build and close. Will my loan be compromised? Ive have no late payments

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 01:30:16 GMT

They typically ask for an LOE for inquiries within a certain amount of time whether you have 5 or 25 so I wouldn't worry about it

Re: Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 02:14:39 GMT

I definitely wont be doing ANYTHING with my credit from this point on but disnt know if the damage was already done.... we still have at least 5 months to go before they finish the house.

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 13:01:26 GMT

Just write line by line what the inquiry is and if you got credit or not. They will ask for a statement if they need one. Just don't go maxing out those new cards, it will cause a temporary score drop.

Re: Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 17:39:26 GMT

I have 10 cards 2 of those are cap 1. Secured and a QS1 the other store cards i only carry a balance of 290 on my macys and 399 on my walmart with 350 on my cap1 secured and 800 on my cap1 qs1. The other 6 have 0 balances and is setting my overall utilzation at 16% my plan is to pay all balances down 60days before closing

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 18:14:35 GMT

In preparing the LOE I suggest you list out each inquiry, reason, outcome, credit balance, limit and minimum payment, if any.

They will likely have you do a Credit Summary near closing where they have a third party verification to each one of the inquiries to verify each inquiry and determine if you increased your monthly debt payments.

Your pre-approval is based on certain percentages of monthly income to ongoing debt, mortgage, taxes and insurance payments (home).

On our second pull we had very minimal balances ranging from $6.00 to $200.00. We had to pay them off in full, verify where the funds came from with updated bank statements and then a third party verification entity had to conference with each bank.

Recommend you try to avoid this delay by not applying for more debt and stay focused on obtaining a home.

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 18:21:34 GMT

The main question is: were those debts on your application/ credit report when you applied.

Re: Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 18:34:48 GMT

Yes Firemedii everything that is on my report is all reporting and was reporting at the time of the pull...i do not plan on obtaining any new credit for a very long time and my plan is to have all of these balances paid off at least 2 months before closing so i have the best score and odds. My focus is definitely the house and maintaining what i currently have. Im a Medic also what state are you in?

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 18:55:35 GMT

very good, although once the mortgage process is done it is no big deal to use the cards as needed. It is the waiting for processing where it matters as the application goes by minimum payments on each account to figure out the DTI so it is new/higher payments that effect the DTI and not just new cards. That is why some people get yelled at for new car purchases and some people get flat out denied. It is always why some people have to pay off the 300.00 credit card because it could push them over the DTI by a very small percentage. Anyways Indiana Medic.

Re: Need a LOE for 25 inquiries

Anonymous — Thu, 20 Oct 2016 19:11:32 GMT

Congrats on the new house.

The more detail you can give, line by line, the better. Underwriters like to know you understand your credit, that you have a plan and that you are working it. Also, mentioning that you will not be apping for additional lines is a good thing to add and that your plan will have the lines paid in full by XX date. The more of a complete picture you give them, the less questions will come back to you after submitting the LOE. If your DTI is close to the max allowed, be prepared that you may be asked to close some/all accounts that put you close or over the max.

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Re: Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 22:08:00 GMT

I Have to do the loan without my hubby on it but they are using his debts as the state of Tx requires it, our DTI is within normal range i was told front and back was good sooo no worries there. Mie payment on all my cards monthly combined is 250 but with 6 retail cards ive had and not ever even charged....i will be closing thise line when all this is over as they are obviously not needed. I was just trying to establish credit at the time and obviously went overboard. Lesson learned,

Re: Need a LOE for 25 inquiries

jamevfan — Thu, 20 Oct 2016 22:21:27 GMT

Thanks Firemedii hopefully things will go over smooth with this, we still have 5 months to go sooooo we will see. My scores are still climbing and this time last yr i was in the low to mid 500's my current middle score is 655 so hoping all this hard work wont be screwed by inquiries. The LO and LO assist is helping either because i cant get them to answer the phone or give direct answers the couple of times i have talked with them, my husband is just advising me to give them time. We started 3 weeks ago when the builder (KB Homes) were in the middle of switching lenders so they are said to be overloaded and there are some delays. I spoke with my salesman and was told that i had no worries so im keeping the faith. Thanks for your reply it helps ease the anxiety hearing from this who really are familiar with the process

Re: Need a LOE for 25 inquiries

Anonymous — Fri, 21 Oct 2016 00:13:26 GMT

Hey there,

May I ask what is LOE? We are planning on selling our current home of 10 years to buy another once our discharge hits 2 years which will be in Sept 2017. I have already been in touch with a realtor and have discussed our situation. Since we have been building our scores and credit with credit cards, after reading this thread I am a bit concerned about the credit inquiries we have. Do they or will they hurt our chances in buying another home? I have 15 and my hubby has a few less. I guess now would be a good time to stop and just keep what we have since it will be 11 months before we do anything. The realtor said they would look at our credit sometime in May/June to see where our numbers are and then we can start looking for another home. Any help would be appreciated. Thanks

Re: Need a LOE for 25 inquiries

jamevfan — Fri, 21 Oct 2016 06:44:29 GMT

Its a "letter of explanation" for all of the inquiries o have dated back 12 months.... they want to know why i applied for credit and if credit was actually recieved. Seems they are trying to match my inquires with my actual credit cards obtained to make sure my DTI has not or will not change. I recommend not oulling anything from here on out, im hoping our status doesnt change but i will keep everyone posted however i think i will be ok as long as i dont aquire any other HP or credit lines that arent already on my profile. Seems like they ask for these LOE a lot whether you have 2 inquiries or more.