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Amber, Other/Just Looking in Lake Saint Louis, MO

when will my mortgage company re-check my credit before we close?

Asked by Amber, Lake Saint Louis, MO Tue Aug 4, 2009

when will my mortgage company re-check my credit before we close?

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4
they will run your creidt again before you close to make sure you haven't incresed your debt to income etc. its usually when it is in final underwriting a few days to a week before you close
0 votes Thank Flag Link Wed Dec 9, 2009
Amber -
YES - there is a distinct possibility your lender will check your credit very close to your closing (like the day before even). They do that to make sure you are still employed (not fired or layed off) and to make sure you haven't done anything that has drastically changed your ratios of debt to income.

A few years ago, even after I told my buyer to do nothing until after we closed, I had someone who bought a motorcycle 10 days before closing, then skipped work one too many times and was fired two days before closing. We went and did the final walk-through with the builder, were set to close the next morning at 10am, he never said a word about either thing and I got a call from the lender at 4pm that afternoon saying he wasn't employed and by the way also bought a large purchase that ruined his credit picture. We didn't close.
This is of course a drastic scenario but true.

Although not all lenders check some do and the best thing to do, after being qualified, is:
1) Don't open up any additional credit streams - credit cards, department store charges, etc.
2) Wait until after you've closed to tell you boss you hate him and are going to work for the competition
3) Don't make any purchases that aren't absolutely necessary - like food. You can buy that great sofa for your new house AFTER you own the house.

Good luck and happy house buying.
Trisha Lee REMAX Boone Realty, Columbia, MO
573-999-1000 TrishaLee@Remax.net
Web Reference: http://www.TalkToTrisha.com
0 votes Thank Flag Link Wed Aug 5, 2009
The lender may or may not re-check your credit report prior to closing. It depends on the lender and how recent they pulled your credit report.

If you are asking the question because you are thinking about making a large purchase on credit, I would wait until after closing.
0 votes Thank Flag Link Tue Aug 4, 2009
A credit report is good for 90 days usually. Depending on the broker/lender relationship they may repull a separate one regardless however.
0 votes Thank Flag Link Tue Aug 4, 2009
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