Re-pull of Credit Report – Reviewing the Updated Report


Today is the third and final part in a series on the re-pulling of one’s credit report when applying for a loan. The first post discussed why this is required, and gave a helpful list of things not to do in order to avoid problems with the re-pull. The second post discussed the “new-look” loan approval process and how the re-pull can impact loan approval. Today, we’ll focus on what an underwriter looks for on the re-pulled credit report.

When reviewing the re-pulled report, an underwriter is mainly looking for three things:

  • Credit Scores: this is the quickest and easiest thing an underwriter will check on the re-pull of the credit report. If one hasn’t opened a new credit card account, charged up existing credit cards, bought a car, etc., the credit scores should be the same. Just follow the steps outlined from the first post, and all should be fine.
  • Review Minimum Payment Due Figures: each credit card, student loan, car payment, etc. has a minimum payment due listed on the credit report. On the re-pull of the report, the minimum amount due is compared to the original. If there are no new credit accounts OR one hasn’t charged up existing accounts, then the underwriter will move on to the last item they’ll be reviewing on the re-pulled report.
  • Recent Inquiries: I know what some of you reading this may be thinking… “I can finance new furniture or a new car before closing because there won’t be time for the newly financed account to show up on my credit report.”… That is true, there won’t be time. BUT… an inquiry is instantly added to your report. If an underwriter sees a recent inquiry made by someone other than the lender underwriting the loan, the borrower will have to explain why the inquiry was made.

#1. It is a quick and easy explanation if an inquiry was made while shopping for a mortgage. The borrower would write a letter saying “I applied for a mortgage with ABC Bank, but decided not to use them for my mortgage.” Done and done and on to closing.

#2. However, if it is something else, it could delay closing until it can be established how much the new minimum payment will be AND an underwriter re-review your file with the new debt obligation – not fun!

Again, this can all be avoided by not applying for ANY new credit (cards, furniture, car) or charging up existing credit cards. It all comes down to this… what would you rather do? Move in on time to that new home OR have a possible delay in closing, interest rate changed, or possibly have the loan denied by financing a car for the new garage OR financing furniture for the new living room. You’ll have plenty of time to finance a car and/or furniture after closing.

Fannie Mae’s Loan Quality Initiative is one of many hoops borrowers have to jump through when applying for a mortgage. Fortunately, this is actually one of the easier ones to avoid. If you are buying a home in the state of Georgia and would like to work with a professional who is aware of the changes in the industry, call me today to get started. I would be happy to go discuss all of the stages and potential hurdles of the loan process.


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