HELP! - Worried about final credit pull and increase CC balance. (loan officer, escrow)
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For the most part my credit card balances have decreased during the home mortgage application process. But, I have one card that I increased the balance on by almost $1000, and it's now at about 70% utilization. I used this card to pay for things like the home inspection, the mortgage application fee and some other stuff. I've already paid my most recent payment, but the card has a statement cut date of Sept. 20. I'm thinking of doing another payment before the statement cut date. My closing date is September 25th. What do you think the chances are that the new balance will show for this card when the bank does the final credit pull? Will this have an impact on the final loan approval? I can pay $1000 on the card today from my bank account, but I don't want to touch those funds since I am so close to closing and I feel like the bank is going to want one more bank statement from me.
Any advice would be awesome? OK, don't whittle toward you. The risk of a slip of the knife into your hand is great.
Regarding your situation, it is probably going to depend on how close your 'numbers' are to what the mortgage company wants. If it were me, I would call the escrow office or loan agent (whichever is appropriate for your area) and tell them your situation. Really, everyone involved wants this loan to close so they should be able to advise properly
Hahaha, very cure jw2. I guess that call for advice was pretty vague. Is it strange that I don't want to call my LO to talk about this. I feel like I don't want to send up any red flags, and raising this might create one.
They are going to check balances, not the score, and re-figure your debt ratio. You should tell your Loan Officer now. Why would you not? Your LO will probably ask what the new minimum payment is and likely tell you that you are fine unless you presently have a 49.99% debt ratio. Even then you may still be fine.
They are going to check balances, not the score, and re-figure your debt ratio. You should tell your Loan Officer now. Why would you not? Your LO will probably ask what the new minimum payment is and likely tell you that you are fine unless you presently have a 49.99% debt ratio. Even then you may still be fine.
This is helplful. I thought they were going to check the score, not the balances. The increase is not really going to affect my minimum payment that much, so the DTI should be fine. I was concerned that they would hold the balance increase against me just because it's a higher utilization.
That will lower your score. If your score is borderline, then you need to consider paying the card down as much as you can before the statement cuts.
Ok, so I decided to just pay it tomorrow, which is one day before my statement cuts, so I don't risk hurting my score. Ugh, I hate having to play the credit card game, but it clearly is a necessity.
Again - they are not going to check your score, only the balances. If the credit report that was originally pulled for the file expires (usually 60 days), then and only then will scores come into play.
Again - they are not going to check your score, only the balances. If the credit report that was originally pulled for the file expires (usually 60 days), then and only then will scores come into play.
Pfhtex, but won't a big balance increase be looked on negatively? I'm so confused.
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