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TiredofAdulting

VA Loan - Closing Question

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We pre-qualified for a home loan in October 2018 for a new construction home. We are still waiting for the home to be completed. The Loan Officer pulled our credit again in March (because we were expecting to close around this time). Loan officer advised that our credit information was good through 07/2019. If we don't close by the end of May, we will have to submit new employment information. If we don't close by mid-June, we have to re-certify statement of service.

 

My question is: how likely is the loan officer to pull our credit again prior to our tentative closing date of 05/24? Is that the usual process? I'm wondering if I should go ahead and setup cable/utilities/security system prior to close when it's a hard inquiry for each company. My spouse is leaving at the beginning of June so it only gives us 2 weeks to get everything situated for the house.

 

Thanks

 

 

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Posted (edited)

I'd be careful there.  In 99% of cases, I would agree that INQs are essentially meaningless, however, if he/she is close to a cut off point for qualifying for a better rate (say a FICO of 741 for example), the hit from the INQ may cost them the couple of points they need to stay in a higher tier.

 

OP - I would ask your LO what the process is and what the cutoff is for the best rate possible. If you are safely above the gut-off or past the last credit check then go ahead and set up your utilities.  If it is close I would wait until you're in the clear.

Edited by CTSoxFan

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Posted (edited)
35 minutes ago, CTSoxFan said:

I'd be careful there.  In 99% of cases, I would agree that INQs are essentially meaningless, however, if he/she is close to a cut off point for qualifying for a better rate (say a FICO of 741 for example), the hit from the INQ may cost them the couple of points they need to stay in a higher tier.

 

OP - I would ask your LO what the process is and what the cutoff is for the best rate possible. If you are safely above the gut-off or past the last credit check then go ahead and set up your utilities.  If it is close I would wait until you're in the clear.

I am of the understanding that the final credit pull before closing/funding is to ensure there are no large new debts or new derogatories.

 

I don't know if there are any idiosyncrasies related to VA loans, but in general it's common practice to do the final credit pull right before funding.

 

At that point the docs are already signed, and in order to change your interest rate they'd have to redo all of the disclosures, wait three days (thank you, TILA-RESPA Integrated Disclosure Reform), and then have you re-sign the entire deal. 

 

Same would be true of a rate/term change right before signing.

Edited by cv91915

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32 minutes ago, cv91915 said:

I am of the understanding that the final credit pull before closing/funding is to ensure there are no large new debts or new derogatories.

 

I don't know if there are any idiosyncrasies related to VA loans, but in general it's common practice to do the final credit pull right before funding.

 

At that point the docs are already signed, and in order to change your interest rate they'd have to redo all of the disclosures, wait three days (thank you, TILA-RESPA Integrated Disclosure Reform), and then have you re-sign the entire deal. 

 

Same would be true of a rate/term change right before signing.

I think you are right, I would just hate for the OP to find out the hard way and have something change (agree it would be unlikely and quite idiotic, but you never know...)

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I was no where near the cut off when I bought last home so it had no affect on me but I had called the cable company same day as closing and they had a hard pull. As a result I had to write a quick LOE for the file on the hard pull. They weren’t concerned about it but now I do wish I would have just waited.

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15 hours ago, CTSoxFan said:

I'd be careful there.  In 99% of cases, I would agree that INQs are essentially meaningless, however, if he/she is close to a cut off point for qualifying for a better rate (say a FICO of 741 for example), the hit from the INQ may cost them the couple of points they need to stay in a higher tier. 

 

OP - I would ask your LO what the process is and what the cutoff is for the best rate possible. If you are safely above the gut-off or past the last credit check then go ahead and set up your utilities.  If it is close I would wait until you're in the clear. 

My scores are perfect. My spouse's (who is also the vet) scores are the ones we had to work on. We are also locked in our rate. The LO gave such a vague answer. I sent an email to confirm what she said and copied other people on it. I'm still waiting on a response.

 

I think I'll just wait until closing day. I'm just annoyed because I won't get a promotion they were offering with the security system.

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13 hours ago, tiggerlgh said:

I was no where near the cut off when I bought last home so it had no affect on me but I had called the cable company same day as closing and they had a hard pull. As a result I had to write a quick LOE for the file on the hard pull. They weren’t concerned about it but now I do wish I would have just waited.

Thanks for the response. I'll just wait too.

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