My mortgage broker said the had pull showed on my credit report yesterday is the final pull by my mortgage bank. I have to use $2000 on my credit card tomorrow for emergency. Will my mortgage bank do another soft pull again before closing, will they be able to see my new credit card expense and reject me or increase my interest rate? Thanks.
Loan officer here. Do not do that. It could slow your closing down. Especially if your debt to income is really tight and the new monthly payment throws you over your ratios. Try your best to do it after closing if possible.
As long as the report wasn’t frozen, they’ll only check for new inquiries. Also, your cards report to the bureaus once per month, they don’t report daily. Usually in the first 10 days of the month. You should be fine. I’m going to caution you though, make sure this is an actual emergency and there’s no other way. If you’re buying a TV or something similar, that’s not an emergency.
Also, your cards report to the bureaus once per month, they don’t report daily. Usually in the first 10 days of the month.
Whole credit card companies do usually only report once a month (and more often than not, tied to the closing date), there is no role on when they can report. They could report every day if they wanted to.
OP, just look at your own report and you’ll see when that credit card has reported in the past.
@Reagan
my this credit card closing date is 18th November. But I have to spend this $2000 tomorrow which is 17th November for emergency. So my credit card bank will report this $2000 new expense on 18th November.
@Piper
You’re giving way too much credit to the credit bureaus. That won’t report that fast on a report. You’re fine. Again, they’re only going to soft pull for new credit inquiries, not updated balances.
If you buy today, the charge won’t show up until next months statement. If your cycle ends on the first (not always the case) then the charge won’t get reported until December. Just be careful as closing can get delayed a week or two if things come up.
I’ve seen day of closing pulls before. Also seen cc show up next day. Don’t risk it.
Charge probably won’t show up until after closing and it would really only matter if dti was tight.
Just don’t. Why do people make these types of terrible financial decisions?
Buying a house and needing to throw a 2k expense on a card? Best of luck. Outside of minor things at this point I’m inclined to do on my own most expenses medium to major will easily be in that range
Don’t do it if you’re not willing to risk losing your house over it. Delay 24 more hours.
The lender might also do an audit after closing and see your new balance. If the $2000 increase in balance doesn’t affect your credit score or your monthly payment, then nothing will happen. However, if it lower your credit score or increase your monthly payment which cause you to be disqualified before your closing date, then they will require you to pay off the loan even if you already signed everything.
@Luca
If they audit after closing, can they actually force you to pay anything off? How would they enforce that?
Blair said:
@Luca
If they audit after closing, can they actually force you to pay anything off? How would they enforce that?
They can make you pay it at closing or move around money from down payment in order to keep the terms the same, you just end up with a higher loan balance.
@Dayton
They said an audit after closing, which is what I was asking about. Obviously before closing they can ask you to do whatever they want or not give you the loan. But once you’ve already closed what would an audit achieve?
Just buying a house and you sweating a 2k bill? Seems like you aren’t in a great position to buy a house. I only say this cause houses aren’t cheap and if something goes wrong it’s usually more than 2k.
@Bell
It’s probably not the spending, it’s the hassle of having to explain it to the mortgage company and if it can’t be paid fully, that payment would count against your DTI and throw a wrench in the approval.
@Tyler
My point is why not pay in cash. I guess I’m the only one who thinks it’s odd that this person doesn’t have extra cash on hand after a purchase. Like 5-10k emergency ok yeah maybe credit card but 2k?
@Bell
Most people do all their purchases on credit cards and then just pay them off. Or maybe they have money coming in on a future paycheck and don’t want the hit to their bank balance right now.