I am in the process of buying my first home. Offer has been accepted, loan has originated. I have signed 100 forms so far (kidding, but it feels like I'm getting there), but my lender did let me know that I do need to pay down the balances on my credit cards to a 0 balance, I'm guessing in order to lower my DTI ratio. His assistant has stated they will not repull credit but are doing a credit supplement. Does this mean they are only going to "refresh" the balance after I pay down the cards before the reporting date? Also, is this going to refresh the whole report or only the accounts they are telling me to pay down? And one last question. I have an account that I paid off but since it accrues interest daily, the interest of $8 reported on 1/23 on the statement closing date. I have since used this card to pay a bill and it now carries a bigger balance. Am I paying the whole balance I owe off or just the $8 that is showing up as my current balance right by the credit bureaus? This account will not report again until 2/23. Any advice is appreciated. Thank you!
I believe it’s a refresh of the entire report and it can occur more than once or as many times as the Lender sees fit. Lenders are confirming that no new credit has been acquired; payments on all debt obligations are continuing to be paid on time; and no liens, judgments, collections and/or disputes have been newly filed. Since your lender has stated that cards need to be paid to zero to lower your DTI, IMHO I think you should not be charging anything to your CC that cannot be PIF by statement cut date.