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CLosing on 11/15 - Question on Credit check just before closing

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CLosing on 11/15 - Question on Credit check just before closing

Hi All you wise folks here,

 

I am very excited to say that I will be a homeowner in a month's time and I am a bit nervous about it as well due to something my friend told me today. 

So, I applied for a new home by Pulte in April and am taking Pulte Mortgage as well for a decent house for us. We have put in 15% and decided to go for the rest as loan (~360K). I am taking a 30Yr conventional loan. They pulled my credit once in April and I was 801 median score and they were happy about it and I did everything to provide all sorts of explaination of all my bank statements etc and shown them details around everything. My underwriting was approved and then they had question in when I was locking my rates and I clarified those as well, got my underwriting approved, rate locked and I was told my Pulte Mortgage lender support team that I am all good, I should wait to see a disclosure 5 business days before when I will have to return the signed disclosures and remit the 15% plus the cash to close. 

 

During this rate lock process and underwrite approval, they ran another credit mid Sep and the score was 803 median so they're pretty OK with that. Iam pretty much ready with the money I need to close but I also have obviously some planned BIG purchases, appliances and furniture etc. Now, my friend told me today that do not mess with your credit at all, no new inquiries or anything else it can cause questions and explainations and delays. But, planning for those BIG expenses, I just ordered myself a nice 0% APR for 15 months card which I am assuming would have lowered my score few points.

 

Now my worry is - would it affect my closing? should I not charge that card till I close? My Pulte mortgage guy said we will not pull your score anymore because your current score is as recent as mid Sep but is that true that they will indeed not? Now that I have already taken a card, my score must have dropped but by how much? and would it change anything? if yes, what should I be prepared for? any help from anyone is highly appreciated as I am quite a newbie on this and being first home, it's all butterflies... 

 

5 REPLIES 5
Frequent Contributor

Re: CLosing on 11/15 - Question on Credit check just before closing

Your friend is right, you are not supposed to order any credit cards while in mortgage limbo. But whats done is done. You'll need to report it to your mortgage loan officer immediately and will most likely need to submit a credit supplement and possibly a letter of explanation. Its another hurdle and your file will probably need to go back thru underwiting.
Message 2 of 6
Member

Re: CLosing on 11/15 - Question on Credit check just before closing

big no no to open new credit when you are in the middle of this process just explain it to the LO probbaly iwll have to go back to under writing if they pull again usually thye do a week or so before close to make sure nothing  has changed  they do a soft pull the last time which looks for any new credit or changes

Message 3 of 6
Regular Contributor

Re: CLosing on 11/15 - Question on Credit check just before closing

Although you "shouldn't" have done it, they will likely not pull your credit again before closing. I would suggest NOT telling the loan officer and only explain it if they by some chance run your credit again and it appears. Keep in mind it also takes quite a while usually for a new account to report on your credit report, so the only thing they would probably see is a new inquiry. I wouldn't sweat it, but I also wouldn't charge anythign on the card until after you've closed. 

Message 4 of 6
New Member

Re: CLosing on 11/15 - Question on Credit check just before closing

Thanks, this is what I have been thinking because of few reasons:

 

1. My funds are already available and clear balance from my savings which I am putting together towards the 15%.

2. I have a excellent score for last few years - generally 800+. 

3. Since they told me that they will not pull any creadit at all since my credit is already pulled twice and the requirement by the underwriter was the score should be recent one before I can be approved so they did it mid Sep and then approved me. During this I have explained them the one rental inquirey on my history and one T-mobile but both were soft inquiries, no new card opened in last 24 months and my utilization of credit has been less than 4-5%. I pay almost just before it bills since last 12 months so that my score remains good.

4. After all the threads, I am thinking to hold off charging anything on this card so that I can explain this if at all first of all they pull the credit and also if at all, this shows up in the inquiry. 

 

If anyone has any experience with Pulte Mortgage, please let me know. 

 

Message 5 of 6
Moderator Emeritus

Re: CLosing on 11/15 - Question on Credit check just before closing


@Scorpio19 wrote:

Thanks, this is what I have been thinking because of few reasons:

 

1. My funds are already available and clear balance from my savings which I am putting together towards the 15%.

2. I have a excellent score for last few years - generally 800+. 

3. Since they told me that they will not pull any creadit at all since my credit is already pulled twice and the requirement by the underwriter was the score should be recent one before I can be approved so they did it mid Sep and then approved me. During this I have explained them the one rental inquirey on my history and one T-mobile but both were soft inquiries, no new card opened in last 24 months and my utilization of credit has been less than 4-5%. I pay almost just before it bills since last 12 months so that my score remains good.

4. After all the threads, I am thinking to hold off charging anything on this card so that I can explain this if at all first of all they pull the credit and also if at all, this shows up in the inquiry. 

 

If anyone has any experience with Pulte Mortgage, please let me know. 

 


Honestly that's your only rational option at this point.  Everything else sucks, if it does report, and there is a balance, and your lender does check, that's going to be an utterly unnecessary pothole in your mortgage process.

 

You can get credit cards in a couple of days and furniture and what not a few days after that... once you are closed and have keys in hand; the mortgage is one of the biggest events of everyone's lifetime, keep your eye on the prize and let everything else which truly doesn't matter right now wait.




        
Message 6 of 6
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