Used a credit card before close of escrow...?

Question

Hi, I'm currently going through escrow with a close date of Sept 22. I recently charged up a credit card about $500.00 (I know I know) but do plan on paying this off before close of escrow. Will this be a problem and how soon will they re-run my credit before closing? Im also battling with a medical bill that hasn't showed up on my first credit check but if it shows up when they re-run my credit will I be given a chance to pay it off?? Thanks for your helP!

Answer 1

Without knowing details about the medical bill, the $500 credit charge should not be an issue unless that card has a $500 limit.

I actually had a $5000.00 credit card bill I was paying off (2.99% for unlimited time) when I refi'd, which is sort of why I went with my existing lender for only $170 closing costs instead of shopping for a different lender at slightly lower interest, but much higher closing costs.

When I first bought the home 3 years earlier the bank was very polite to me when I was gathering the down payment together in my checking account.

Answer 2

Talk to your loan officer.  They are working to get your loan and will tell you how this all works.  If they are a good loan officer they have worked with the underwriter a lot and know what will happen.  You do not want to lie or mislead anyone, but there may be good and bad ways to structure your affairs.

Answer 3

Go have a nice sit down with your mortgage broker, the person who's arranging the loan for you. He/she doesn't have a personal interest in the mortgage company's money but he/she does have a personal interest in making sure the loan goes through. Otherwise they don't get their fee.

Chances are this won't be a problem but the talk will give you a lot of peace of mind. Most lenders don't rerun your credit anyway. Once your loan is approved, it's approved.