Using Credit Before Closing??

firemartinez1980 · ‎10-27-2020

My wife and I have been in the process of having a house built for the last 6 months. We are 90% complete now and the construction manager has said the house should be done November 9th.

Our Mortgage lender just reran our credit yesterday and told us the current score will be good for 90 days and that they are getting everything ready for closing which they anticipate to be just before Thanksgiving.

So my question is.....Since they just ran our credit and they will go based off of it, would it hurt to use our credit card now or get a small loan??

Our new home doesn't include a refrigerator and we also need some new furniture and would like to have these things when we move in, but we don't wont to buy anything and have it somehow mess up or mortgage.

Any advice?

Gladius · ‎10-27-2020

Me personally, I wouldn't. But I am paranoid with thigs like that. Our last 3 house builds we did not use credit as per LO instructions even though they (like you) ran credit about a month before the closing date. But we also didn't move in on closing day. We had a week or so to move in. My wife goes "buck-wild" on her spending right after closing!

peter1974 · ‎10-27-2020

@firemartinez1980 wrote:
My wife and I have been in the process of having a house built for the last 6 months. We are 90% complete now and the construction manager has said the house should be done November 9th.

Our Mortgage lender just reran our credit yesterday and told us the current score will be good for 90 days and that they are getting everything ready for closing which they anticipate to be just before Thanksgiving.

So my question is.....Since they just ran our credit and they will go based off of it, would it hurt to use our credit card now or get a small loan??

Our new home doesn't include a refrigerator and we also need some new furniture and would like to have these things when we move in, but we don't wont to buy anything and have it somehow mess up or mortgage.

Any advice?

I agree with the prior comment, hold

off if you can. We are in the same situation as yourself except a month behind you before ours' is complete. But I extended my current lease by a month (in case our close date was delayed for any reason), so we have about a 25-30 day window to move in, so that took the pressure off to have everything bought in a hurry.

ldkcivilservant · ‎10-27-2020

DO NOT use any cards that will report prior to the closing, and most certainly do not try to obtain new credit!

Try to be smart with dates only results in people getting burned.

What if the closing has to go back a week? What if you use the wrong card and it reports earlier than you expect? What if it's a Chase card and randomly reports mid cycle?

It's just not worth it.

Anonymous · ‎10-29-2020

Wait till you close. Also, start looking at Black Friday deals now. You will prob get those appliances cheaper at that time anyway. Check out afterpay or klarna. They do soft pulls and you can do 4 interest-free payments.

CreditOnTheRise1 · ‎10-29-2020

@firemartinez1980 wrote:
My wife and I have been in the process of having a house built for the last 6 months. We are 90% complete now and the construction manager has said the house should be done November 9th.

Our Mortgage lender just reran our credit yesterday and told us the current score will be good for 90 days and that they are getting everything ready for closing which they anticipate to be just before Thanksgiving.

So my question is.....Since they just ran our credit and they will go based off of it, would it hurt to use our credit card now or get a small loan??

Our new home doesn't include a refrigerator and we also need some new furniture and would like to have these things when we move in, but we don't wont to buy anything and have it somehow mess up or mortgage.

Any advice?

I'm in the same boat as you. New home construction supposed to be done on 12/10 with closing on 12/18. But I'm waiting to apply for anything new for credit. I need a fridge and washer/dryer set. I took the option of having $10k off the price instead of the very bland appliance package. I want to buy a counterdepth fridge for cleaner lines and more custom look due to fridge placement. And the builder grade washer/dryer is blah with not a lot of features. It's SUPER hard because i worked on my credit for 6 months to qualify for my home and now that I finally have good credit, I'm too scared to use it!! Hard being patient but hopefully it will be worth it.

peter1974 · ‎10-30-2020

@CreditOnTheRise1 wrote:
@firemartinez1980 wrote:
My wife and I have been in the process of having a house built for the last 6 months. We are 90% complete now and the construction manager has said the house should be done November 9th.

Our Mortgage lender just reran our credit yesterday and told us the current score will be good for 90 days and that they are getting everything ready for closing which they anticipate to be just before Thanksgiving.

So my question is.....Since they just ran our credit and they will go based off of it, would it hurt to use our credit card now or get a small loan??

Our new home doesn't include a refrigerator and we also need some new furniture and would like to have these things when we move in, but we don't wont to buy anything and have it somehow mess up or mortgage.

Any advice?
I'm in the same boat as you. New home construction supposed to be done on 12/10 with closing on 12/18. But I'm waiting to apply for anything new for credit. I need a fridge and washer/dryer set. I took the option of having $10k off the price instead of the very bland appliance package. I want to buy a counterdepth fridge for cleaner lines and more custom look due to fridge placement. And the builder grade washer/dryer is blah with not a lot of features. It's SUPER hard because i worked on my credit for 6 months to qualify for my home and now that I finally have good credit, I'm too scared to use it!! Hard being patient but hopefully it will be worth it.

I feel you on that last part. I'm getting the kind of "pre-approved" credit card offers that I haven't seen in 18 years....that's how long I've had bad credit. On top of that, automatic credit limit increases on my existing cards that I can't even take advantage of, lol.

But it's worth the wait!

Anonymous · ‎10-31-2020

I agree with the consensus, there's no reason you can't just buy the things you need once the house is complete. A couple extra days whre you are, or even roughing it for a week in the new house never killed anyone.