topic Closing in a few days in Mortgage Loans

Closing in a few days

Anonymous — Wed, 24 May 2017 02:58:24 GMT

I have what feel to be a slightly unique situation (not entirely I just haven't seen anyone with this situation on the internet). My mom and dad just purchased a new home so I wanted to get information about purchasing their old home at a much lower price. Before I knew it I was well into applying for a home loan. I was approved with conditions and then then the dti went out of whack and then was conditionally approved again. From the beginning I let my LO know that I had a cc that was showing up on my credit report with a balance lower than it actually is. He made note and noted to pay off certain debts in the loan to qualify my dti. Everything has gone smoothly and I got the clear to close on Monday 05/22/17 and am set to close on Friday 05/26/17. I have asked if they will run my credit again and end up not finding the loan because my credit dropped when the credit balance finally reported. I have not opened any new lines of credit or paid anything off. I have been completely honest with everyone about everything. My credit was borderline for what the lender allows in the first place and I'm so afraid that they will end up running my credit in the next couple of days and see that it has lowered. I monitor my fico 8 and the score they use did not change at all but from what I understand your "mortgage specific" score only calculates when it is requested. Do I have any reason to worry that this deal may fall through at closing? Do some lenders not check credit again before closing? For reference I am doing and fha loan. The only reason my credit changed is because of s card that they already knew about... in freaking out! I just want Friday to get here and for all to go smoothly! I've already been scheduled and gone over the final numbers.

Re: Closing in a few days

Anonymous — Wed, 24 May 2017 06:02:49 GMT

Uncertainty is causing you anxiety. If you have the funds then simply buy a 3B report here with myFico and KNOW what your mortgage scores are. You will either be relieved or you will have a data point to share with your LO and ask point blank if it will effect your loan. Either way, your uncertainty will no longer be about your mortgage scores. Good luck. Hope it all works out!

Re: Closing in a few days

VALoanMaster — Wed, 24 May 2017 10:58:01 GMT

@Anonymous wrote:
I have what feel to be a slightly unique situation (not entirely I just haven't seen anyone with this situation on the internet). My mom and dad just purchased a new home so I wanted to get information about purchasing their old home at a much lower price. Before I knew it I was well into applying for a home loan. I was approved with conditions and then then the dti went out of whack and then was conditionally approved again. From the beginning I let my LO know that I had a cc that was showing up on my credit report with a balance lower than it actually is. He made note and noted to pay off certain debts in the loan to qualify my dti. Everything has gone smoothly and I got the clear to close on Monday 05/22/17 and am set to close on Friday 05/26/17. I have asked if they will run my credit again and end up not finding the loan because my credit dropped when the credit balance finally reported. I have not opened any new lines of credit or paid anything off. I have been completely honest with everyone about everything. My credit was borderline for what the lender allows in the first place and I'm so afraid that they will end up running my credit in the next couple of days and see that it has lowered. I monitor my fico 8 and the score they use did not change at all but from what I understand your "mortgage specific" score only calculates when it is requested. Do I have any reason to worry that this deal may fall through at closing? Do some lenders not check credit again before closing? For reference I am doing and fha loan. The only reason my credit changed is because of s card that they already knew about... in freaking out! I just want Friday to get here and for all to go smoothly! I've already been scheduled and gone over the final numbers.

If you've been given the Clear To Close you should be in the clear. When a lender does the final credit check ( usually within 10 days of closing) they are not doing a hard pull & checking scores, they are doing a soft pull to make sure you haven't applied for/opened any new credit. Ask your LO if the soft pull has been done yet.

Congrats!

Re: Closing in a few days

Anonymous — Wed, 24 May 2017 11:59:26 GMT

I have read that clear to close is a great sign that everything is clear. I purchased the score that they used to qualify me for the loan and it has indeed dropped one point lower than what they want you to have. I let them know upfront about the credit card balance and I asked if they would be running my credit again as I knew that the credit card would cycle and then show and cause my score to dip a few points. It was almost as if I was asking an unspeakable question so I just left it alone hoping not to give anyone any ideas. I guess my thought process is that if they knew that the score was borderline but is well within the FHA score guidelines then I would hope that they wouldn't get my hopes up and have me changing my life situation (packing, closing gym membership, scheduling electric to be turned off..) if they knew that they would run the score again and it will have dropped a bit. I would just hate to lose the house over 1 point. This has probably been the most stressful 15 days (which I'm told is almost an impossible speed to close an fha..but my dad is the seller so we worked together to get documents in quickly) of my life and I just want it to end with me moving into my new house! Thank you so much for your comment, it made me feel a little better about hard pulls vs. soft pulls of credit.