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This is like my 4th post, I want to give all the facts this time.
I am near the end of my loan closing. My rate lock ends next Sunday. My loan was with the underwriter but its been transfered to the closing department. My credit score is 786 as of last time I checked. I picked out furniture at a local chain store, and I applied for their Preferred Shopper Card. I have not been billed yet and will not be until after delivery. I have more than enough money in the bank to pay for this purchase when it will be time to be billed, as well as enough for my closing costs/down payment. I don't even know if this will be discovered by the lender, but if it does, do you think an explanation will be enough? Will they even care? I want SERIOUS answers.

2007-08-25 08:39:24 · 8 answers · asked by buffyfan80 2 in Business & Finance Renting & Real Estate

8 answers

Your lender will not care, period. Your credit score is above average and you are not a risk. The only reason they would care about your balance is if you had past debits which were slow payoffs as it would go to help prove your present worthiness

2007-08-25 08:52:35 · answer #1 · answered by Anonymous · 2 0

In my opinion, your purchase and applying for the shopper card will not have an impact on your credit score. As a result, your lender/creditor would not change the terms of the loan or even question your purchase. Even if for some unlikely event your credit score does take a small hit, the details won't be known to anyone but you, hence the only thing the creditor will see is the score. Don't stress this.

2007-08-25 08:50:30 · answer #2 · answered by gene177 2 · 1 0

It is possible that it will affect you.

Lenders are jittery right now and rightfully so. So, if they do pull credit again prior to the transaction closing, they may, at the very least, want a "Letter of Explanation" showing why this credit was pulled.

You should NEVER apply for a credit card or charge big ticket items to an existing card until after the closing of a purchase. Understand, loans do make it to the closing department and never make it out. I hope you won't have difficulties but your lender and/or agent should have explained this to you prior to now.

Best of luck.

2007-08-25 09:26:34 · answer #3 · answered by liveinaustin 3 · 1 0

Credit Scores are not the only thing lenders care about!!!

While your score is good enough to not worry, what the lender will take a closer look at is your monthly income vs. monthly debt because that furniture is going to add to your monthly debt.

If your income is good, compared to your monthly debt, and you are well within the lenders threshold, then I would not worry about it.

If you just squeezed by b/c you have 3 car payments and $100,000 in student loans, then yes cancel the order.

2007-08-25 09:51:40 · answer #4 · answered by akaagassi 2 · 0 0

My serious answer is you will have to sign a paper at closing saying nothing has changed in your finances since when you filled out the loan application.

If you sign that without telling them about the furniture that would be a lie. But it could look like a mistake- that you forgot about that furniture or didn't know that it mattered.

I guess that is probably what I would do. Lay low and only explain it if they ask. The explanation may or may not satisfy them, but they may not even discover the loan in the first place.

2007-08-25 08:47:30 · answer #5 · answered by glenn 7 · 2 0

Well I understand your concern. I think I answered you before. And yes I think it is possible they lender will find out. The furniture store probably checked your credit and that will show on a credit report, which they pull just prior to closing. And it could, we don't how much you spent, but it could impact your loan. What I suggest you do it cancel the order and get a receipt. That way if the lender does ask, you have cancelled the order. It is the safest way to handle this. You can always go back and reorder.

2007-08-25 08:50:00 · answer #6 · answered by Anonymous · 0 2

This seems like my 50th serious answer to your questions.

It may not be a problem at all, and it seems like you are tearing your hair out over something that is DONE. There is absolutely nothing you can do at this point to change this. If the lender has a problem with your actions, you'll know soon enough. But it may be just fine, your credit score is good, I'll assume your debt to income ratio is fine.

Deep breaths. It is going to be OK.

2007-08-25 13:03:58 · answer #7 · answered by godged 7 · 0 1

Relax! Take a couple deep breaths. The fact that you applied for a new charge card and have furniture on hold, will not affect your closing. Even IF they recheck your score, and your score dropped due to the credit check for the charge card, your score will STILL be good enough for your mortgage.

2007-08-25 08:48:52 · answer #8 · answered by bdancer222 7 · 2 0

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