topic Re: Credit Refresh before Close in Mortgage Loans

Credit Refresh before Close

Anon23 — Fri, 24 Mar 2023 17:18:47 GMT

Hi,

I am currently freaking out about the soft pull before close.

We close on our house on 3/31 and I have received alerts that my CC balances have increased by about $900.

I have a high utilization rate (I did in the original application as well), my DTI % is not affected (roughly 32%) in fact it stayed pretty much the same even with this $900 increase in credit card balance (monthly payment didn't change).
My middle score reduced from 647 to 627. I am terrified we will not be able to close. This was such a boneheaded mistake as we have the money to pay it down, I just totally missed it.

Please advise, thanks

Re: Credit Refresh before Close

Anon23 — Fri, 24 Mar 2023 17:20:35 GMT

I also should note we have received our clear to close already, and signed the initial disclosure.

Re: Credit Refresh before Close

boroqcat — Fri, 24 Mar 2023 17:27:45 GMT

Doesn't sound like a material amount. Should be able to provide an explanation letter, at worst, to add to the file and get the closing pushed through.

To put your mind at ease, would recommend getting in touch with your loan officer, ASAP, and getting their feedback/input. If he/she warns that this may be an issue, there is a process where you can get in touch with the bank's underwriting department and inform them of your circumstances. They may allow you to pay down the balance and issue a rapid rescore (see link for details).

So don't panic. It's not a significant amount, in the grand scheme of things, and there are options/resources if it comes down to it. You will need to act quickly and get info/the ball rolling with your closing being less than a week away.

Re: Credit Refresh before Close

ShanetheMortgageMan — Fri, 24 Mar 2023 22:30:38 GMT

The credit refresh is just to get updated balances/payments, not new credit scores. If your DTI still qualifies with the refreshed numbers (which it sounds like it does) then there won't be any issue. I wouldn't be concerned.

Re: Credit Refresh before Close

Anon23 — Mon, 27 Mar 2023 16:44:05 GMT

When will I know they've completed the final refresh and we are good to go? 4 days out and I just reached out for final disclosure, should be receiving it today or tomorrow.

My only concern is my UTL went from about 78% to 85% and one of the cards was maxed out (one other card was already maxed out). Final two cards had balances decrease, one to zero.

Our total debt went down, and even monthly payments because one card was paid off and that monthly payment was reduced.