In October I saw some great incentives on a new home and I had no plans before to purchase until I saw this. So I pulled the trigger on a mortgage to buy the home. I've been conditionally approved but I had some inquires and new accounts in the past 120 days, technically most were in July which are out of the 120 day range now but my report was pulled end of Oct. Of course they gave me a request for letter of explanations for the inquires. So I answered honestly about applying becuase I liked the cashback or just wanting to increase my credit limit. I only owe on one card because I put my rent on it and pay it off monthy but had to disclose the balance because I wanted to be truthful and the payment wont change my ratios at all. Will this kill my approval? It will be paid off before my closing date. I didn't realize I would be asked about these when I applied.
No you'll be fine.
You probably shared more information than you needed to since all they're looking for is whether the inquiries resulted in a tradeline (debt) that doesn't show up on your credit report. This inquiry resulted in this tradeline is what I've done for my own LOEs and nobody says boo.
If the tradeline doesn't show up on your credit reports, that's when you typically need to furnish information as to what the balances are, though I've been asked sometimes for balance verification on some accounts for sometimes odd reasons (to me anyway) even when they're on the credit report... like how in God's name does a balance on a $500 credit card make any difference at all with a 13% DTI backend calculation. Underwriting /shrug.
They asked for amount borrowed and payment on the form. So I wanted to be truthful.