Posted on: 21st Sep, 2011 11:54 pm
I will be closing my mortgage next week… My lender has asked me to give a letter at closing stating that we have not obtained any new debt. If he do so, won’t he be pulling our credit again?
Hi Guest,
Even though you give that letter, the lender can still pull your credit and check the authenticity of the letter. It is always better that you don't take out any new debt just prior to the closing of your mortgage.
Thanks,
Jerry
Even though you give that letter, the lender can still pull your credit and check the authenticity of the letter. It is always better that you don't take out any new debt just prior to the closing of your mortgage.
Thanks,
Jerry
He could, but probably won't unless your credit was borderline to begin with or something else seems fishy. Keep your credit as stagnant as possible prior to closing on a mortgage. You don't want anything to mess up the situation right before you sign the closing documents. Unfortunately, it happens a lot these days.
Lenders are required to verify that you obtained no new credit that was not disclosed on your mortgage application and they are responsible for veriifying that right up to the closing date.
Many lenders, not all, get a new certdit report within ten days of closing to see if there were any new INQUIRIES, the purpose being that INQUIRIES often mean credit was applied for. If there are any new inquiires, you would have to explain what they were for. If for any new loans, you would have to document the terms of the new loan.
If your lender asked you for a letter, maybe they also get a new credit report and maybe they do not.
We can not speak for your lender definitively either way. Ask your lender if they are also getting a new credit report in addition to the letter they requested.
Many lenders, not all, get a new certdit report within ten days of closing to see if there were any new INQUIRIES, the purpose being that INQUIRIES often mean credit was applied for. If there are any new inquiires, you would have to explain what they were for. If for any new loans, you would have to document the terms of the new loan.
If your lender asked you for a letter, maybe they also get a new credit report and maybe they do not.
We can not speak for your lender definitively either way. Ask your lender if they are also getting a new credit report in addition to the letter they requested.
