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Old 11-17-2008, 05:30 AM
 
84 posts, read 342,717 times
Reputation: 27

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We are closing on our home today. Yesterday we were shopping for furnitures and applied for 1 year 0% interest loan and got declined. I was really shocked about it. I have 700+ score and was really shocked to see the credit declined. Does it have anything to do with the home being closed today?

I thought my home loan won't be in my credit yet and thats why I was kind of confident of getting the loan approved.

Did any one have this problem?
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Old 11-17-2008, 05:56 AM
 
958 posts, read 2,574,455 times
Reputation: 827
Maybe, but the loan hasn't shown up on your credit report yet.

Usually takes some time to for any credit check or mortgage loan to show up on credit reports.

You may get a letter in the mail stating why you were rejected.
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Old 11-17-2008, 07:11 AM
 
Location: A little suburb of Houston
3,702 posts, read 18,216,670 times
Reputation: 2092
Another lesson...never make any big purchases while you are in the process of buying a house. I hope they do not conduct a last minute credit check...some do.
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Old 11-17-2008, 07:34 AM
 
Location: San Antonio-Westover Hills
6,884 posts, read 20,409,476 times
Reputation: 5176
They have most likely seen the inquiries from the mortgagee(s) on your credit.
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Old 11-17-2008, 07:37 AM
 
Location: Visitation between Wal-Mart & Home Depot
8,309 posts, read 38,782,175 times
Reputation: 7185
Quote:
Originally Posted by predatorprey View Post
Maybe, but the loan hasn't shown up on your credit report yet.

Usually takes some time to for any credit check or mortgage loan to show up on credit reports.

You may get a letter in the mail stating why you were rejected.
The loan will not appear on the OP's credit yet, but if you have been shopping for mortgages you have doubtless had your credit run several times recently and that does show up. Credit lenders will often run up a red flag when they see a prospective borrower has been very active trying to get credit in recent history. I would assume this is the reason for the rejection. If you try again in six months it will be a different story.
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Old 11-17-2008, 07:45 AM
 
Location: Austin & Houston, TX
1,461 posts, read 5,598,157 times
Reputation: 425
Which bank was it with? If it was Wells Fargo they are pretty touch on giving lines of credit. Many factors are taken into consideration not just your beacon score. Request a copy of your credit report from the agency that declined you with in the next 30 days to get a better idea as to why they declined you.
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Old 11-17-2008, 08:08 AM
 
354 posts, read 2,430,822 times
Reputation: 255
Most banks aren't lending right now because of the state of the economy. Even ppl with "perfect scores" are having problems getting approved.
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Old 11-17-2008, 08:27 AM
 
Location: Sugar Land, TX, USA
759 posts, read 3,184,856 times
Reputation: 233
Pay Cash they cant decline that. Most financial institutions are looking for people with 780+ Credit...how the economic mess started. The furniture stores I went to had this zero % financing thing, however; my credit card gave me 2% back, so I put everything on the credit card then paid off the balance at the end of the month...I got ~$1500 back...the credit card companies hate me. the Furniture guys did not like me as much as before...(they get a commission on every finance deal they make)
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Old 11-17-2008, 08:45 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,738,039 times
Reputation: 4191
Credit is tightening. Also its a bad idea to take on any debt until the house closes so you don't risk a last minute reversal. Remember that nothing is final until you complete closing.
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Old 11-17-2008, 09:56 AM
 
Location: where nothin ever grows. no rain or rivers flow, TX
2,028 posts, read 8,121,977 times
Reputation: 451
or better yet, make your funitures
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