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Rates are down today. Today’s rates with no lender fees are 3.5% APR on a 30 year, 2.875% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)

Today’s topic is inquiries on your credit bureau. Or in plain English, when a lender asks you why you have so many credit pulls on your credit report.
Check it out in today’s video:

It is common for a lender to do this for every inquiry on your credit report in the past 120 days, and let’s face it, you’ve been shopping around, so you might have a couple.
So, even if you applied for a Best Buy credit card to grab that 60 inch flat screen…you will need to explain that in the form of a LOX or Letter of explanation.
The reason for this is simple. Lenders want to make sure all your debts are accounted for during the underwriting process. Some debt can take awhile to show up on your actual credit reports so this is one way of gathering all the information to underwrite your loan.
This will also include the time your loan is in underwriting. There is a credit refresh pulled a few days before closing. So if there are any new inquiries you will have to explain those as well.
*IF you took out new debt it will need to be added to your debt ratios. So, DON’T take out any new debt during underwriting. It may result in a turndown or at the very least more documentation to get your loan to closing. And who likes that? So, If you are planning on buying all new furniture and putting on your plastic. Don’t! Wait until after your loan closing.
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgage…forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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