New Account No Balance Impact Mortgage Closing?

MMart078 · ‎02-26-2016

Hello,

I am in underwriting for a home loan and have a question about a new account. Prior to entering underwriting I opened a new card with AMEX and but they did not pull my credit, (I have had a ZYNC opened sinced 2011). The new account has not yet showed up on my credit report but it may any day now. However it will show a 0 balance. How will this impact my home loan closing? The processor informed me that they will get an alert when new accounts are opened, but with 0 balance does this impact me?

Anonymous · ‎02-26-2016

@MMart078 wrote:
Hello,

I am in underwriting for a home loan and have a question about a new account. Prior to entering underwriting I opened a new card with AMEX and but they did not pull my credit, (I have had a ZYNC opened sinced 2011). The new account has not yet showed up on my credit report but it may any day now. However it will show a 0 balance. How will this impact my home loan closing? The processor informed me that they will get an alert when new accounts are opened, but with 0 balance does this impact me?

Well I guess you already know you should never apply or open any new accounts while going through the mortgage process. If AMEX doesn't backdate accounts anymore then you will see your score decrease due to the average age of accounts changing.

Anonymous · ‎02-26-2016

Even with a $0 balance, this will impact you. Not sure how you were able to get a credit card without a hard pull, but that is besides the point. You will need to explain this to your LO. It may or may not delay closing. Just call the LO and explain what happened.

DallasLoanGuy · ‎02-26-2016

expect a score hit.

loan officer will have to run new credit and re-run automated underwriting when the account shows up. usually they find out pretty late in the process.... so you need to let lo know when it shows so they can address it early

Retired Lender

MMart078 · ‎02-26-2016

Thank for for the feedback. I will do that. But to answer your question about the credit pull apparently AMEX does not always pull a new credit report for current account holders when they apply for a new card.