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Tuesday, May 24, 2011

Last Minute Creidt Pulls before your loan closes ...

Your loan is clear to close, you have 1 day until you will own your home. Your attorney has scheduled your close date and time - and you get a call from your loan officer. Your credit report was re run before the close day - and you have applied for a credit card with a local home improvement store or furniture company for the great 10% discount on your newly purchased furniture and paint- for your new home. Now your loan closing is possibly going to be delayed – or your loan type changed.
Why? If you open a new account after you have applied for a mortgage the bank must see a copy of your statement, your rate and terms of the new debt - and re qualify your loan based on the worst case scenario - you borrowing the full limit of the new line of credit (credit card) and the new monthly payments.
Best advice - DO not open a new account before you loan is closed.

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