This was a rather stupid situation that got out of hand......got approved for a mortgage. Going to sign the papers tomorrow. We take possession of the house in a couple of weeks. In preparation for the new house we look at lots of stuff: paint (didn't know there were so many colors called "white") etc because the wallpaper in one room is hideous, flooring and enough carpet samples to cover a football field! We've also been looking at furniture so that if we have more than 2 people over, they would actually have a chair to sit on ;-) The problem is when we decided on the items we liked, we had planned on holding them via layaway. I thought we just needed to put a deposit of 10-30% or so and then we'd just pay the whole balance in a month when we decide on a firm delivery date. I take off for the bathroom and when I get back I find out that the 'layaway' process was actually one of those 6 months no interest credit programs! What's more, my SO put in an application!!!! WTF?!?!?! Well the app didn't actually go through, something about a downed link with Well Fargo Bank (loan company for the furniture place). They put in the order nonetheless because they assumed it would go through. So here's the problem. My dad tells me that mortgage companies pull your credit one last time before closing just to see if you've taken out a loan for the downpayment. How accurate is that? We have the cash to cover the order but I wanted to do the layaway just in case we needed more money than planned for the closing etc. Should I be worried about this or did I overreact when I flipped out on the sales clerk and my SO? Should I be buying some flowers?
Well, your Dad is right. you never apply for credit until you close. the lender will pull a report the day you close. The good news is it can be explained... If I were you, I'd take the paperwork for the layaway with you to the closing. don't mention it, but if it comes up you have an explanation for the inquiry. because it's home improvement related, it should be ok. But never do that ever again!!! As for flowers... they're always nice Your real gripe is this: if the layaway process didn't tell you properly they were pulling credit they're in the wrong... if they did, you two should have read better... wait til the closing and if all goes well, you buy the celebration dinner (and maybe have some flowers in the trunk)...
You MUST have the keys in your hand, and ALL papers signed before you apply for anything!!! Have parents, sister, brother, buddy buy the "STUFF" and do a BT to their account after you close.
heh heh well I shoulda read better anyway. I *assumed* and you know what they say happens when you assume..... Flowers in the trunk huh? I don't know...there's already a big ole sofa with floral print on order!
ooooo BT is a good idea! I know just the person to ask for help in that area. No more applications until after closing. That's when Home Depot becomes a second home!
We closed Feb. 28th and our lender pulled for the last time on the 15th. They did not pull again the day of closing, although it can happen. We waited to apply for ANYTHING until we knew the house was ours! But you should be okay, like everyone said.
I am about to refiance, just dropped off the paper work yesterday. Gave strict orders to the wife- no applying for anything. Best regards, Mirage
Thanks for the advice! A few of the items on order are replacements from an insurance claim but we have to buy first then get reimbursed. We have the paperwork to prove that so I'm *assuming* things will be fine...we'll find out this afternoon!
All is well! We met with the mort broker today. Everything was fine. In fact, when we were thought we were going to need an extra 20k he said that in actuality, we qualified for MUCH more than we asked for!! Almost double!!! But since we set our sights on certain styles and they all run the same amount, we never dreamed about going higher. It turns out they did have another vredit report from yesterday. I asked his about the deferred purchase and he said so long as our W-2 and rental references were clean (they were) then the furniture was of no concern to them. We get the keys when they move next week!!!
