Soft pull before close question

[Anonymous]

Hopefully I am smart enough to know the answer to this, but when it comes to lenders and the credit bureau I want as many opinions as possible. ha!

I close on my house on April 12th. I have already locked my rate. The lender wants to do a soft pull 20 days prior to closing or even at closing just to see and new accounts, collections and she said "balances".  All of my cards are reporting a $0 balance and they dont close again until after I close on the house (April 12th and my cards close April 19, 21 and 24).

Here's my question: If I spend on some new items for the house and technically have a balance at the house closing but they havent reported yet... the SP will still show $0 balance right? I am assuming so, but wanted to know if there was a way for them to pull "current balance" or if they just look at the current reported balance.

Thanks in advance,

Brew

[pipeguy]

The general consensus is - do NOT open new accounts or make any major purchases during the mortgage process, meaning just before or during. That said "everyday spending" that might show up as a balance (gas, food, utilities, basic clothing needs, etc) won't affect anything as long as the reported balance is moderate and just reflects the normal cost of living expenses. In other words, your credit "balance" is not so delicate that everything needs to show $0.00 - just put off buying new furniture or replacing your car until after you settle and you'll be fine.

[Anonymous]

thank you. I appreciate that and I am well aware. However, that was not my question. I am more concerned with what shows up on a SP mid-cycle.

Thank again,

Brew

[RobertEG]

If a creditor has not yet reported an update to the CRA, it wont be available in any credit report, be it a hard or soft inquiry.

The issue is whether/when the creditor might report, and thus whether it may become known when an new pull made.

Increased balance is increased debt.

How marginal was/is your debt to income ratio?

[Anonymous]

debt to income is 24%

[CreditCuriosity]

You are correct in theory they should not see it as it won't close until after you have closed on your house.  What would suck though if for some reason say a credit such as synchrony (which is known to do mid-cycle reporting) reports then one could be up crap creek or if your closing gets pushed back for some reason.  If you aren't worried about mid cycle report possibly happening or sure that you WILL close on date and statement/balance reported doesnt report until after closing then your theory is correct as they have no way of knowing unless obviously this CC is with your lender you are taking the mortgage out on as the CRA's typically reflect the balance after the statement cuts monthly a few days after statement cuts.. I am closing next week and bought a few things nothing that will wack out my overall DTI ratio for the new house, but holding off until after closing before buying bigger ticket items in the 4-6k range on CC's as it simply isn't worth the risk.  With that said I put about 2.4k on CC's and confident enough that I will close on time, the CC's I chose report only monthly and it wouldn't be near enough to swing my DTI ratio to ruin the mortgage regardless.  Always better being safe than sorry as is it worth buying a few things early for the house though and not having a house to put it in?  That is what most experts say.

[Spider07]

If you are not boarderline with your credit score or DTI, don't worry about it.  The only issue would be if a card reported and the payment caused you to be over the DTI or if your credit score changed enough to drop you from qualifying for whatever loan you are getting.  So if you are setting at say 621, I would hold off incase the increase balances moved you to 619 etc. 

[JVille]

Don’t do it! Regardless of a great DTI any change reported (and it sometimes happens) can cause your file to go back to underwriting. And the Pull will be at the time Doc’s are sent to title company.

Don’t do anything until your deal records! Which is NOT the day you sign

[capricornchanges]

Jville:

Are you saying that a lender will pull credit AFTER closing BEFORE they send it to be recorded? I worked at a mortgage company for years and we never did this. Once the loan is closed, its closed, why would they go back and Repull credit days after the loan closed just to record it? Ive never heard of that.