topic Re: Opened a credit card 2 days befor close in Mortgage Loans

Opened a credit card 2 days befor close

Anonymous — Wed, 11 Oct 2017 22:07:38 GMT

I stupidly opened a credit card today and I close in 2 days and I'm afraid my loan will get denied.

I got final approval on Monday, 10/9, I signed my closing documents on 10/10, the sellers are signing today,10/11, and we are to close on Friday 10/13. I don't know what I was thinking, but I was worried about needing a fridge for Saturday and so I applied for a Best Buy Card and an RC Wiley store card without thinking that I sign ll haven't officially closed. The title officer requested for funds to be available tomorrow, 10/12, to record on Friday. I'm freaking out that I just shot myself in the foot. Can I still be denied?

Re: Opened a credit card 2 days befor close

CH-7-Mission-Accomplished — Thu, 12 Oct 2017 02:43:27 GMT

Is this a setup?

Re: Opened a credit card 2 days befor close

Anonymous — Thu, 12 Oct 2017 02:45:41 GMT

No.... I'm just an idiot

Re: Opened a credit card 2 days befor close

CH-7-Mission-Accomplished — Thu, 12 Oct 2017 05:49:02 GMT

You will be fine. Don't worry.

Re: Opened a credit card 2 days befor close

Anonymous — Thu, 12 Oct 2017 08:27:41 GMT

Good chance the TL wont even report for another 2 weeks, they might see the inq though, either way youre probably fine.

Re: Opened a credit card 2 days befor close

NC_Mtg_Loaner — Thu, 12 Oct 2017 19:44:50 GMT

Be sure to have the terms of your new credit card available. Contact your loan officer and let him know what you've done so that he can be ready to update your final application which you'll sign at closing but won't want to fraudulently omit the new account even if your lender doesn't conduct a new soft pull to ensure your final DTI figures are in line with your loan approval.

Depending upon your current situation, income and dti, you may be ok.

I've seen people with Low DTIs relocate to my area and purchase a new car a week before closing with no issue approving the loan. Of course, I've seen people arrive at the closing table the day after purchasing a refrigerator that was to be delivered the next day (an hour after Closing) only to have to contact that store and cancel the sale in order for us to verify it because they weren't able to finance a celebratory meal until after Closing.

The key is to know what you owe and to be straight up with your lender so that you can't be implicated down the road......not that the Feds would ever imprison anyone over mortgage fraud....(but it is a felony)

Re: Opened a credit card 2 days befor close

Anonymous — Thu, 12 Oct 2017 19:48:08 GMT

Thank you NC_mtg_Loaner. All documents were already signed when I applied. I'm just waiting for funding so that we can record. I'm just worried that they'll run another credit check before they fund.

Re: Opened a credit card 2 days befor close

NC_Mtg_Loaner — Thu, 12 Oct 2017 20:53:05 GMT

At Closing which is prior to funding, you are in effect signing a Final Mortgage Loan Application.

If your new credit account that you just opened isn't included in that final mortgage loan application (the 1003) paperwork and then you sign it, you'll likely be conducting mortgage fraud if you don't disclose that you have a new account opened in your name--that's why I am saying that you should mention this to your LO ASAP.

Chances are, your lender needs to know and you should want to find out.