Firstimehome…, Home Buyer in North Carolina

I need a Lowes Card I'm closing on 11/30/10. I know to wait until after I close to apply but should I be concerned about the funding of the loan?

Asked by Firstimehome55, North Carolina Fri Nov 19, 2010

I need a Lowes Card . I'm closing on end of Nov I know to wait until after I close to apply but should I be concerned about the funding of the loan? I mean after closing it takes 3 days to fund the loan. This is a USDA guarenteed loan. Would applying for credit after close but before funding cause it to be recinded?

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7
I don't think so, after the papers are signed it should be a done deal and there would not be any further credit checks.
0 votes Thank Flag Link Tue Nov 23, 2010
I agree with my associates that you should wait. In addition to waiting ask your realtor to sign up on his/her Dashboard for the Lowes Realtor Benefits Program which is offered to all NAR members. This program offers discount to homebuyers thru your realtor where you will receive discount coupons and newsletters from Lowes.
0 votes Thank Flag Link Sat Nov 20, 2010
Hi, I totally agree, I was in the mortgage industry for a very very long time before I got into Real Estate and I have seen over and over again these issues. The lender will most likely re-verify your credit and job the day before or the day of closing to make sure there has been no new credit which would affect your Debt to Income ratio nor have you quit your job. So please sit tight.. and don't do anything until after your closing or you could jeopardize being turned down. The way the lender will look at it, even if you just open the account and did not use it, they would have to figure a minimum payment and add it into you DTI, the loan would have to go back through underwriting and sometimes the margin is so small even at $10 - $20 a month payment could make the DTI go beyond the program limits and the loan be denied. So again. sit tight..
0 votes Thank Flag Link Fri Nov 19, 2010
I agree with Rob. Don't take any chances. Besides, you don't need to buy anything for your new home until you get the keys.
0 votes Thank Flag Link Fri Nov 19, 2010
Firstimehome55,

I would not apply for any new credit until EVERY aspect of the transaction is closed. The cons outweigh the pros if you do anything while in the loan process, even up to funding and recording. Sit tight if you can and get your Lowe's card after you get your keys.

Good luck in the new place!

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Fri Nov 19, 2010
Once the attorney records the deed, the home is yours. That means that all monies have been funded. I believe that most times, the store credit cards like Lowes are approved on the spot and you can use the limit before you even get a card so they make it very easy to get in debt!!! In other words, you dont have to be in a rush, just wait until the attorney says the deed is recorded and then go do what you have to do. I would not do anything before then. I know i don't have to tell you this but...."PAY THAT CARD OFF AS SOON AS YOU CAN!!!! LOL

Congrats on your new home!
0 votes Thank Flag Link Fri Nov 19, 2010
The short anser is no. Once the closing takes place, a credit inquiry will not cause any harm.
0 votes Thank Flag Link Fri Nov 19, 2010
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