topic Re: Applying for credit after closing. in Mortgage Loans

Applying for credit after closing.

Anonymous — Sun, 01 Apr 2018 16:10:27 GMT

I am closing on my home April 9th, the seller is staying for 30 days. I would like to apply for a Home Depot card at some point before we move in. At what point after closing is it ok to apply? I tried searching for the answer but I was getting a lot of different answers. Thank you!

Re: Applying for credit after closing.

Anonymous — Sun, 01 Apr 2018 17:15:24 GMT

I don’t think it matters as long as it’s after closing. I’ve seen post of approvals same day as closing, but after.

Re: Applying for credit after closing.

Anonymous — Sun, 01 Apr 2018 18:31:41 GMT

As long as it’s after closing it should be fine. You just don’t want unnecessary pulls before getting the paperwork finalized

Re: Applying for credit after closing.

Anonymous — Sun, 01 Apr 2018 18:52:08 GMT

Ok thank you I read next day, 72 hours, wait a few weeks etc. So confusing lol.

Re: Applying for credit after closing.

pipeguy — Sun, 01 Apr 2018 21:36:21 GMT

3 business days after you close you can do whatever you want at that point.

Note typically "funds" are not dispursed until three business days after you sign the papers at closing - not sure if its a federal (HUD or Fannie/Freddie Mae) or state law, but every loan I've settled sell or buy or refi real estate in VA, MD or SC has followed this rule. Once funds are dispursed the mortgage is set in stone as far as how it affects your credit "for" the loan. With Real Estate transactions you have 3 business days to cancel the transaction and I guess in rare cases the lender can theoretically cancel too (don't think I've ever heard of that happening outside of "discovered" fraud).

I just settled on a refi of my home loan on Friday, March 30th, funds will be dispursed on Weds. April 4th. I have plenty of credit including Home Depot and Lowes, but I'm not going to make any major purchases until Thursday

Re: Applying for credit after closing.

Anonymous — Tue, 03 Apr 2018 03:08:56 GMT

Thank you, I will wait the 72 hours.

Re: Applying for credit after closing.

CreditCuriosity — Tue, 03 Apr 2018 18:17:11 GMT

kinda scary never heard this after I closed I applied and took 4 HP's for credit.. Two new cards approved double pulls.. Charged some stuff, but nothing will report a balance at least till the 6th at the earliest.. My Lawyer(title person) and mortgage broker both said go for it after signing paperwork and apply away/spend.. So hopefully they knew what they were talking about the mortgage broker i used it top 150 in country and his company fund the loans till they resell within the month. Interesting none the less. Sure I will be ok, but scary read none-the-less as always thought when you got the keys you were good to go. Got all my paperwork sunday the 1st and closed on the 30th.. So assume the paperwork signed by all parties makes it official? What is weird is I was never soft pulled ever after the inital HP of the loan. I find that very strange, but figured I had such an agressive close they probably had monitoring on me to know if I had any new inquiries / credit during process.

My understanding in a WET/Table state funds are transferred within 30 mins to a few hours after closing? I closed started at 9 am on friday and finished at 930ish.. the seller then later signed the papers it appears and got it all scanned and sent to me sunday the 1st. Hopefully it is finalized as didn't hear anything today

edit: so called today and a bunch of nothing it funded while I was there and the title/lawyer offical giggled and said send and apply away as you were safe right when you signed your papers to do whatever you wanted and you owned the house at that moment

Re: Applying for credit after closing.

pipeguy — Thu, 12 Apr 2018 04:00:45 GMT

I stand corrected, refi's and HELOC would apply (or if the contract states) apparently "regular" mortgages don't (I think they used to, maybe not) .

http://realestate.findlaw.com/mortgages-equity-loans/three-day-cancellation-rule.html

Personally, I'd wait until I was sure everything was funded/recorded etc. but then again, I don't "need" any new credit lines and if I did, what's three day?

Re: Applying for credit after closing.

wit2bees — Sun, 06 May 2018 05:21:05 GMT

Hi! Your purchase mortgage will fund immediately. Your lender may rerun your credit just before "docs" are delivered and I have seen it ran after closing and before it's transferred for servicing on rare occasions but usually on refinances. You can apply as soon as you close regardless of when you take possession. Your mortgage should have funded (by wire to the title company/ attorney) before you even signed so that the seller's funds can be disbursed.

Congratulations

Re: Applying for credit after closing.

Spider07 — Mon, 07 May 2018 18:09:14 GMT

Wait until you get the call that the loan has funded. My last home purchase, in Texas in Sept 17, the loan funded about an hour after we signed the paperwork. We hadn't even got home yet so we swung by Lazy Boy to get the furniture we had ordered 6 weeks earlier. Once it funds, you can do whatever you want is my understanding. So check with your LO and Title company and see when they will fund the loan.