Question about credit/underwriter (loan officer, credit card, fee, loan)

[Homein2012]

Well I guess my income and dti is satisfactory for the loan because they have not asked anymore questions about that or required anymore documentation, we are now waiting on the appraisal, and I was told the underwriter is now working on the "credit part". I know they pulled my credit last month when I initially got the ball rolling to fill out an application and ask about getting prequalified. Will the underwriter pull my credit again or what other types of things do they review? I assumed it would just be an instant pull and go from there but she said she is "working on it" and that part should be completed by the 13th. The reason I'm asking is because I'm assuming theres obviously more to it for it to take all the way to the 13th. Im totally clueless on this whole process and was wondering if anyone could tell me what exactly goes on during this part. Thanks

[Nelly1996]

We are in the same situation. I was told that they will pull your credit again around the time of underwriter review, and probably again the day of closing to make sure you didn't go credit crazy! It just depends on the underwriter. They will look at every detail in your credit.

Our credit isn't perfect; we have some issues: 2005 bankruptcy, and medical collections (paid)...my credit is 696 and hubby's is 721. I had to write a Letter of Explanation for the bankruptcy and the paid collections. If there are any negative things on your credit report, they will probably have you do these letters as well or anything of suspicious on your bank statements, etc. We turned in our file to underwriting on Tuesday, and my lender said we should hear something on the 10th...it so happens to be my birthday...

Good luck to you.

[JoycMarr]

They will also analyze your bank activity, make sure you don't have any unexplained deposits, make sure you have enough cash to close, verify employment for past 2 yrs and pay verification from your employer to match up with the paystubs you provided, pull your tax filing info (even though you prob already provided it), etc.

[Homein2012]

I have a question about all the credit pulls. The loan officer already pulled my credit when I initially put my application in, so why do they continue pulling the credit over and over again? Don't the credit companys/collections agencies ( i have no collections) just report to the credit bureau's once a month on your statement date<, ? I understand about those who take on new loans/credit cards, purchases etc, but wouldnt it still take over 30 days for those items to post to the bureaus? what could they get from pulling your score more than once in one month besides dinging your score?

[SmartMoney]

Credit reports are good for 90 days. After 90 days a whole new report must be done. These are "hard pulls" and are reflected on your report and in your score. Just before closing, the lender performs a "soft pull." The soft pull simply looks for increased balances from when underwriting was performed, and reviews any new inquiries. A soft pull does not impact your score or show up as an inquiry. Obviously, just before closing it wouldn't be unusual to have a utility iquiry.....but one from a major furntiture store, you will probably see a closing delayed until the new debt can be verified and it's determined you still qualfiy. (They only do this if your credit increases by a certrain percentage).

[Homein2012]

thanks for the info, yeah my credit was pulled initially (when I filled out loan app) less than 90 days ago. The only thing that has changed was I received a credit card I had applied for a week or two before my application that I had forgotten about, but it has a 0 balance on it as of statement date, so idk what effect that might have on anything if I charge anything after statement date but before closing? And does the utility pull just check if you have had any utility bills in collections, or the amount of your current utility bill?

[SmartMoney]

Originally Posted by Homein2012

thanks for the info, yeah my credit was pulled initially (when I filled out loan app) less than 90 days ago. The only thing that has changed was I received a credit card I had applied for a week or two before my application that I had forgotten about, but it has a 0 balance on it as of statement date, so idk what effect that might have on anything if I charge anything after statement date but before closing? And does the utility pull just check if you have had any utility bills in collections, or the amount of your current utility bill?

Anytime a correction is done, a supplement is ordered....not a whole new credit report. Just the one item is corrected and the rest of the report is issued. It's possible your lender ordered a whole new credit, but that is not the preferred method, because it can change scores.

It is always recommended NO NEW CREDIT UNTIL CLOSING. I saw someone put a one-time charge of a cruise on their American Express (for miles) after the credit was pulled for loan app. The soft pull brought up a $6600 charge (going to the Med). The fact the card was going to be paid off next month was not relevant. The only way to not count that as a routine debt was to pay and close the account. Fortunately, they qualified with the extra $400 a month payment, but there are many that would not.

I'll have to double check on the collection, but my guess says, yes, it would show. The soft pull pulls the balances owed and the monthly payment, as well as, any additional inquiries. Most collections post a balance of what is owed and the monthly payment is typically the balance, too. If the monthly payment posted on the collection was 0, it could have no effect.

[Homein2012]

Thanks for the response, my credit cards were at a 0 balance on statement date, so my bill and statement shows as zero with no monthly payment, I've been using them since the statement date, but the new bill won't generate until after I close on the house. I told my loan officer about the new credit card with the 0 balance and thought it should be reported to the underwriter ( since I have to sign a undisclosed debt disclosure) and she said no, I should be fine, and wasn't going to inform the underwriter of the new changes. So I'm hoping everythings good to go! I was just confused they would keep doing hard pulls on my credit because she pulled it for free during my loan application, but after paying appraisal fee she said I had a credit check fee, so I wasn't sure if that was to cover initial credit pull, or cost to repull credit now.

[Weight123]

I am refinacing my home and it has been sent to the underwriter. I would like to add $250.00 to my Home Depot charge card. Would this have a negative affect on my credit with them.

[Pfhtex]

Originally Posted by Weight123

I am refinacing my home and it has been sent to the underwriter. I would like to add $250.00 to my Home Depot charge card. Would this have a negative affect on my credit with them.

Ask them.