list of conditions.... question

[beanie7132]

My loan officer emailed me a list of conditions this morning. One of the conditions is to provide copies of CC statements for 4 accounts and to CLOSE ALL FOUR......... is this normal? I dont want to close these accounts! 3 of them have zero balances since January, and all 4 are store credit cards that I shop at often. I use the cards for discounts and coupons. 

[alexhortdog]

Never heard that one.  Is that even lawful?!?

[Anonymous]

wow...It's crazy some of the things they ask people to do. I don't know if it's normal but I would definitely be questioning a bit if it's not something you're comfortable with.

[beanie7132]

I worry that closing them will increase my utilization and lower my score......

[tooleman694]

It will lower the score for sure, but if they repull you before closing they dont look at the score.

I would question this if you are not close to your DTI ratio.

[Anonymous]

I'm an LO and never had to request this as a condition... UNLESS we were paying off the credit cards with the proceeds of the loan or had to bring down the balances of the cards in order to make the debt-to-income ratio work. Since the balances are zero, I find this odd.

[tooleman694]

It would not be odd if there was a DTI issue

When we were doing our mortgage I had all my cards but one at a zero balance but they still used the minimum payment on the zeroed cards against the DTI ratio. If that put me over the ratio I could totally see them asking me to close them.

[DallasLoanGuy]

not necessary..... push back.

THIS IS NOT IN THE GUIDELINES

i cant believe an u/w would ask this.

[beanie7132]

I dont know why they made the request or if its a DTI issue. I emailed my loan officer to get more detials. Closing them would only cause me to lose about 2K in available credit, but my midscore is borderline as it is: 650. I worry the closure will cause my score to drop so much so that I no longer qualify. 

[beanie7132]

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@DallasLoanGuy wrote:

not necessary..... push back.

THIS IS NOT IN THE GUIDELINES

i cant believe an u/w would ask this.

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So techinically, having these cards, even at zero, shouldnt really affect me.....?

So far I emailed the loan processor and got a response that they were told the one with a balance would be paid at closing and all 4 would be closed. I never said this to anyone. why would I want to voluntarily close accounts that I use.....? The one with a balance is only at like 250. and none of them have ever been higher than 300. 

I am so flustered.