We are preapproved for a home loan and have a credit card question?

Okay, so we have gone through the process to buy a home...preapproved through a bank for a mortgage loan, found a home, did the offer, and the inspection was just finished Friday. Our closing day is June 20th and in the beginning of May we went on vacation and fixed something where we currently live that used our credit limit of $1000. Our realtor said the next credit check the bank will do will be 24 hours prior to closing. Will the credit card keep our loan from going through?

We are preapproved for a home loan and have a credit card question?

Hopefully not! Your realtor may not be correct about that credit check. I have closed over 450 loans in the past, and I have never pulled an additional credit report 24 hours prior to close. Typically, once your lender has your credit report, they would only need a new one if 120 days pass or if a borrower is added to or removed from the loan.

Additionally, this $1000 credit card may not have reported at all yet. Even if it did, the payment on the credit card is very likely too small to impact your qualifications. That said, if you were only 1 or 2 points in your credit score away from not qualifying, you may have reduced your score enough to no longer qualify. Your lender representative should have advised you against making any additional purchases before closing just to be safe, but I think you are probably at very little risk of losing your loan. Opening or using a single, $1000 credit card is not a very large change in the scheme of things. If you went and purchased an expensive car with a $800 payment that would be a very different situation. But for now I think you can relax. Remember- worry is interest paid on a problem before it is due!

We are preapproved for a home loan and have a credit card question?

The generally accepted margin that the lender will look at in regards to your current credit standings is 80%. That 80% means that if your credit cards and other financial burdens are above 80% of their limit, it is damaging against your credit score as you apply to get the house.

If the debt on the credit card is only $1000, it shouldn%26#039;t be a big deal for you to pay off enough of it. Also, if this is your only major debt that you owe to, and the rest of your credit is in good shape, you%26#039;ll be fine.

We are preapproved for a home loan and have a credit card question?

i dont know, it depends if u pay it late.. just make the minimum monthly payment and u shouldnt have any problems.

We are preapproved for a home loan and have a credit card question?

Actually very few lenders would re-run your credit report the day before closing. My guess is that your agent told you that to scare you into not screwing up his commission by going out and applying for a new $5000 credit card at your local Furniture Barn.

Assuming you already had that credit card, you%26#039;ve got nothing to disclose. It%26#039;s generally understood that people use their cards. Opening a new one should be disclosed, though.

Also, credit reports are often 30-60 days behind on their information.

Plus, $1000 on a credit card translates into only $20-30/mo. as a minimum payment on most cards. If your deal is so tight that another $30 added to your debts screws up your qualifying, you should be more worried about your ability to repay the loan than if you can even get the loan in the first place.