Setting up Utilities (insurance, loan officer, interest rate, premium)
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So, I close on my first house one week from today. I am starting to get utilities and all that transferred. My Internet access, however, will be with a new provider. They want to run a credit check before they will let me schedule the installation. I know that lenders run a last minute credit check before the closing to make sure I haven't taken on new debt. Will the credit inquiry affect the lender's decision, or have they already made their decision and are just using the last inquiry to make sure I'm not trying to screw them? I'd really hate to lose the house because I tried to get Internet access. Any advise would be great.
I close on my first house one week from today.
Internet access... want to run a credit check
I know that lenders run a last minute credit check
Will the credit inquiry affect the lender's decision.
The credit report that the lender cares about show changes in your debt-to-income ratio. Thus opening a new charge account with new furniture on it or buying a new car would be no-no's.
The utility company will just run an inquiry to make sure they don't need to hit you with a deposit.
Good question.
Better to be a little cautious vs finding out the hard way that you've screwed yourself.
Credit inquiries are pretty common.
Last edited by chet everett; 09-09-2011 at 08:22 AM..
I had mentioned car insurance shopping to my loan officer (my car insurance skyrocketed when I removed renter's insurance from the policy and my homeowners insurance is going through a different company). The officer told me to hold off on any of that until after closing. This is what is concerning me about letting AT&T ping my credit. I'll go crazy if I screw myself over.
Do utility company's count as a hard inquiry or a soft inquiry? If your credit score was borderline for your interest rate, and the utility company ran a hard inquiry, it could knock your score down by a point or two and push you over the edge to a worse rate.
Not quite sure how far away from being borderline I was when I got approved...I locked in a 4% interest rate, so it'd suck massively if that got increased. Also, I must be out of the house I am in right now by the end of the month, so I can't afford to have this fall through. I might just wait until after closing to set up the installation just to be on the safe side....anyone know if AT&T does installs with 12 hours notice? LOL
I had mentioned car insurance shopping to my loan officer (my car insurance skyrocketed when I removed renter's insurance from the policy and my homeowners insurance is going through a different company). The officer told me to hold off on any of that until after closing. This is what is concerning me about letting AT&T ping my credit. I'll go crazy if I screw myself over.
You really should have the HO insurance and the car insurance going through the same company if at all possible. You're spending way more than you need to otherwise.
I commend your concern and forethought about this - KUDO's to you as a first time homeowner.
I agree that the 'risk' is absolutely minimal, perhaps zero. But you could always just hold off on the internet until the day after closing so you can sleep a little better. You can always hang at Starbucks or the library for a day or two until the internet gets turned on.
You really should have the HO insurance and the car insurance going through the same company if at all possible. You're spending way more than you need to otherwise.
Thanks for the kudos....its a really exciting time.
Believe me I wish I could use the same insurance for both. The reason I am going with a different insurance company is because the rate I am getting for my home insurance is like 1/3 of the lowest rate I could find elsewhere. I'm paying like $500 per year....best price I found elsewhere was $1200/year. Only pain is the home insurance I am using only does homeowners....no auto.
I've got my iPhone, so I guess I will just use that for internet access, although the screen is tiny.
Just contacted AT&T.....they do a hard credit inquiry when they check credit.....so it will affect my mortgage chances in some way....just an FYI to anyone else that may be in the same boat.
By the way, their automated chat thing is terrible.
Thanks for the kudos....its a really exciting time.
Believe me I wish I could use the same insurance for both. The reason I am going with a different insurance company is because the rate I am getting for my home insurance is like 1/3 of the lowest rate I could find elsewhere. I'm paying like $500 per year....best price I found elsewhere was $1200/year. Only pain is the home insurance I am using only does homeowners....no auto.
I've got my iPhone, so I guess I will just use that for internet access, although the screen is tiny.
I get what you're saying about the price difference in the home owners insurance. But let let me play devil's advocate here for a second.
I suspect that if you combined the auto AND the HOI together, with the resultant discounts, the difference really is not as much as you ate thinking it is.
When it cones to insurance, like most things, you get what you pay for. Do you REALLY want to deal with Mr Cheapo Insurance Company when you seriously need them?
Ever heard the expression "if it's too good to be true, it probably isn't"? The price difference you are describing makes that expression ring a red bell in my brain.
Your home is probably your biggest financial investment. It's probably your second biggest emotional investment (your family is #1). Is this really where you want to get the cheapest deal?
I'm not being negative here - I've already said (and sincerely think) you have done more homework than 90% of the first time home buyers. But, as someone who has had to file a couple of minor homeowners claims, I'm delighted to pay THAT premium every month to my company. They are not the cheapest, nor are they the most expensive. But if (God forbid) we ever have a major claim, I know they will stand behind me.
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