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Old 08-28-2008, 01:52 PM
 
1 posts, read 6,362 times
Reputation: 11
Default Mortgage payment due before closing of my refi

hello and thank you to all that are able to help.

I have been in the process of refinancing my home for the last two or three weeks now, and it seems that I will not be able to close this month as planned. Now I will be due another mortgage payment in a few days and I had not planned for.

I called and asked my loan officer and he told me that the title company reserves the right to pull a new credit report before closing, but that since my credit will still be valid for another 30 days they won't need to do so. (costs them more $$) Is this really true?

Should I be worried about the payment due? I've never refinaced before so all of this is new to me. Could it affect me getting my new loan?
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Old 08-28-2008, 02:35 PM
 
Location: New York
1,047 posts, read 1,885,040 times
Reputation: 644
gordon

Your loan officer is not giving good advice. He should of told you from the start, to make your payments until your closing.

As for the timing - must lenders have a required due date the 15th of the month, after that late charges can apply.

As for your credit report being pulled, I had a few loans where the lender wanted to see a last minute C/R (it doesn't happen often). I find it hard to understand why the title company wants to see it. Their main function is to clear the title, doing the closing, generate checks, paying taxes and directly funding the previous lender. I have it hard to understand why they want to see your C/R....

As for your credit report updates, every month your credit report is subject to being updated between the 3rd and 9th of the month.

Piece of advise - tell you loan officer you want a break down of all the closing costs that will be on the HUD. Before the closing agent gets to your house.

Also if your doing an FHA loan - if your interest rate is higher than 6.5% - tell him you want it lower!!!!!!

Good Luck
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Old 08-28-2008, 02:40 PM
 
3,257 posts, read 6,842,232 times
Reputation: 1311
Quote:
Originally Posted by gordon'sdream View Post
hello and thank you to all that are able to help.

I have been in the process of refinancing my home for the last two or three weeks now, and it seems that I will not be able to close this month as planned. Now I will be due another mortgage payment in a few days and I had not planned for.

I called and asked my loan officer and he told me that the title company reserves the right to pull a new credit report before closing, but that since my credit will still be valid for another 30 days they won't need to do so. (costs them more $$) Is this really true?

Should I be worried about the payment due? I've never refinaced before so all of this is new to me. Could it affect me getting my new loan?

If your new loan is a FHA loan you will have to bring your payment current. Otherwise, no big deal. You do not need to make the payment assuming it is your Sept. 1 payment you are talking about coming due. Credit report will have nothing to do with this as you are not late as far as credit reporting is concerned until you are 30 days late.
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Old 08-28-2008, 03:18 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,149,816 times
Reputation: 967
Most lenders have to pay for credit reports. I used to pay around 17 bucks for a trimerge for 2 people, but now pay around 10 bucks.

If it needs to be reissued it used to be 7.50 per every reissue.
I once had 4-5 lenders decline 1 loan, and I had to reissue the credit report to every lender. 17 bucks the first time, 30 bucks in reissue fees.
Plus the lender may have to pay for the Automated underwriting system.
That maybe around 18 bucks.

Title company DOES NOT CARE about credit reports. It is the Underwriter/Lender who cares if the credit report has gone stale or not. Most lenders will use a credit report that is 60days old, and others at 90days.

You need to verify with your current company of when's the last day to make a payment. Some companies allow up to the 15th before they assess a late charge. You will need to be at least 30days late in order for it to be reported on your credit report.

Quote:
Originally Posted by gordon'sdream View Post
hello and thank you to all that are able to help.

I have been in the process of refinancing my home for the last two or three weeks now, and it seems that I will not be able to close this month as planned. Now I will be due another mortgage payment in a few days and I had not planned for.

I called and asked my loan officer and he told me that the title company reserves the right to pull a new credit report before closing, but that since my credit will still be valid for another 30 days they won't need to do so. (costs them more $$) Is this really true?

Should I be worried about the payment due? I've never refinaced before so all of this is new to me. Could it affect me getting my new loan?
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Old 08-28-2008, 03:24 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,149,816 times
Reputation: 967
Please read below

Quote:
Originally Posted by Modification Specialist View Post
gordon

Your loan officer is not giving good advice. He should of told you from the start, to make your payments until your closing. I disagree. If your closing was today, and your payment was due yesterday, then the new lender will include the payment in your closing costs. Imagined if you paid already, then you would have to show PROOF that you made the payment. If you paid at closing then they will know that you're not late.

As for the timing - must lenders have a required due date the 15th of the month, after that late charges can apply.

As for your credit report being pulled, I had a few loans where the lender wanted to see a last minute C/R (it doesn't happen often). I find it hard to understand why the title company wants to see it. Their main function is to clear the title, doing the closing, generate checks, paying taxes and directly funding the previous lender. I have it hard to understand why they want to see your C/R....

As for your credit report updates, every month your credit report is subject to being updated between the 3rd and 9th of the month. This varies per lender/creditor, and they probably update at a different date. Most lenders consider your payment late if it's 30 days late. If they allow you to pay up to the 15th, then it would make sense to report after the 15th. If they reported between 3-9th then you can have a 60days late if they allow payments up to the 15th. Most lenders allow payments up to the 15th.

Piece of advise - tell you loan officer you want a break down of all the closing costs that will be on the HUD. Before the closing agent gets to your house.

Also if your doing an FHA loan - if your interest rate is higher than 6.5% - tell him you want it lower!!!!!! Why? Do you have intimate knowledge of his credit scores, credit file, etc? What if his credit score is 400, and this file requires a manual underwrite? What if the lender is making an exception that no other lender will make? I know lenders who do 'dirty FHA' loans, and their lowest rate is at 7%. These loans are loans that no other lender can do, and they can do it at a higher rate due to higher risk.

Good Luck
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Old 08-28-2008, 04:54 PM
 
Location: Plano, Texas
1,674 posts, read 4,100,800 times
Reputation: 633
What ever you do, make sure you make your August payment before the end of the month. Do not send a check at this point, call and pay over phone and make sure payment posts before the 31st, and that is a Sunday, so i would advise make sure it posts by the 29th. If your loan is delayed closing and will close in September, the lender doing the refinance will want evidence that you made your August payment. If you dont make the August payment your credit scores will be adversly affected and the lender doing the refinance may deny your loan. The title company will never pull credit and honestly they dont care whether you make the payment. It seems like the loan officer you are working with is giving you bad information or maybe you have misheard what he or she told you. So bottom line, make your August payment, close the first week of September which will allow you to skip your Sept. and Oct payments. Then make sure you do not use this loan officer again.
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Old 08-28-2008, 06:14 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 11,149,816 times
Reputation: 967
Gee I hope the OP meant to pay September's payment no August.
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Old 08-28-2008, 09:18 PM
 
Location: Plano, Texas
1,674 posts, read 4,100,800 times
Reputation: 633
Quote:
Originally Posted by renriq02 View Post
Gee I hope the OP meant to pay September's payment no August.

You might be right, my bad!!!
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Old 09-01-2008, 08:22 AM
 
Location: Tampa,FL
54 posts, read 181,761 times
Reputation: 18
MAKE THE PAYMENT!!! Even if you make the payment, you will be credited back the amount when the payoff goes through. The original mortgage company will send you the difference in a refund check. You will not really be out anything so just pay it and save yourself the headache and worrying.
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Old 09-03-2008, 11:07 AM
 
Location: Richardson, TX
6,522 posts, read 9,371,878 times
Reputation: 12779
Renriq said: "This varies per lender/creditor, and they probably update at a different date. Most lenders consider your payment late if it's 30 days late. If they allow you to pay up to the 15th, then it would make sense to report after the 15th. If they reported between 3-9th then you can have a 60days late if they allow payments up to the 15th. Most lenders allow payments up to the 15th."

Lenders don't report anything late unless it's 30 days late, and yes we do have to report to the credit bureaus the first week of the month. We're not reporting you late for September on 9/3, we're reporting you late for August.

It doesn't matter that the late fee is not assessed until after 8/15, your payment is due 8/1 regardless. You are 30 days late for your 8/1 payment on 9/1. (we assume a 30 day month for the purposes of delinquency timelines)

OP, when are you closing now? Are you talking about making the August payment or September?
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