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Need a LOE for 25 inquiries

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Frequent Contributor

Need a LOE for 25 inquiries

Im afraid..... i obatined the bulk of my inquires in May/June of this yr and one recent account with conns within the last 30 days because we needed a new tv. My utilization is 16% overall.... I was asked today by my loan officer to submit a LOE for 25 inquiries. I have mostly store cards and 2 credits cards all with low balances and limits. will this hurt me? It will take 6 months to build and close. Will my loan be compromised? Ive have no late payments 

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 1 of 14
13 REPLIES 13
Regular Contributor

Re: Need a LOE for 25 inquiries

They typically ask for an LOE for inquiries within a certain amount of time whether you have 5 or 25 so I wouldn't worry about it
Message 2 of 14
Frequent Contributor

Re: Need a LOE for 25 inquiries

I definitely wont be doing  ANYTHING with my credit from this point on but disnt know if the damage was already done.... we still have at least 5 months to go before they finish the house. 

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 3 of 14
Frequent Contributor

Re: Need a LOE for 25 inquiries

Just write line by line what the inquiry is and if you got credit or not. They will ask for a statement if they need one. Just don't go maxing out those new cards, it will cause a temporary score drop.

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Message 4 of 14
Frequent Contributor

Re: Need a LOE for 25 inquiries

I have 10 cards 2 of those are cap 1. Secured and a QS1 the other store cards i only carry a balance of 290 on my macys and 399 on my walmart with 350 on my cap1 secured and 800 on my cap1 qs1. The other 6 have 0 balances and is setting my overall utilzation at 16% my plan is to pay all balances down 60days before closing

Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 5 of 14
Contributor

Re: Need a LOE for 25 inquiries

 

In preparing the LOE I suggest you list out each inquiry, reason, outcome, credit balance, limit and minimum payment, if any.

 

They will likely have you do a Credit Summary near closing where they have a third party verification to each one of the inquiries to verify each inquiry and determine if you increased your monthly debt payments.

 

Your pre-approval is based on certain percentages of monthly income to ongoing debt, mortgage, taxes and insurance payments (home).

 

On our second pull we had very minimal balances ranging from $6.00 to $200.00. We had to pay them off in full, verify where the funds came from with updated bank statements and then a third party verification entity had to conference with each bank.

 

Recommend you try to avoid this delay by not applying for more debt and stay focused on obtaining a home.

 

 

 

 

 

Message 6 of 14
Established Contributor

Re: Need a LOE for 25 inquiries

The main question is: were those debts on your application/ credit report when you applied.
Message 7 of 14
Frequent Contributor

Re: Need a LOE for 25 inquiries

Yes Firemedii everything that is on my report is all reporting and was reporting at the time of the pull...i do not plan on obtaining any new credit for a very long time and my plan is to have all of these balances paid off at least 2 months before closing so i have the best score and odds. My focus is definitely the house and maintaining what i currently have. Im a Medic also what state are you in?
Current Ficos as of 01/2017 Equifax 640, Transunion 690 Experian 690 Mortgage middle score of 677
Message 8 of 14
Established Contributor

Re: Need a LOE for 25 inquiries

very good, although once the mortgage process is done it is no big deal to use the cards as needed. It is the waiting for processing where it matters as the application goes by minimum payments on each account to figure out the DTI so it is new/higher payments that effect the DTI and not just new cards. That is why some people get yelled at for new car purchases and some people get flat out denied. It is always why some people have to pay off the 300.00 credit card because it could push them over the DTI by a very small percentage. Anyways Indiana Medic.
Message 9 of 14
Established Contributor

Re: Need a LOE for 25 inquiries

Congrats on the new house.

 

The more detail you can give, line by line, the better. Underwriters like to know you understand your credit, that you have a plan and that you are working it. Also, mentioning that you will not be apping for additional lines is a good thing to add and that your plan will have the lines paid  in full by XX date. The more of a complete picture you give them, the less questions will come back to you after submitting the LOE. If your DTI is close to the max allowed, be prepared that you may be asked to close some/all accounts that put you close or over the max.

 

Smiley Happy

 

 

 

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