Underwriter and credit card

alylove11 · February 2012

So I have an iZoom account for the Indiana Toll Road and when funds get low it charges $20 to fill it back up again on my credit card. I just paid it with my debit card and it went through onto my account. Also, I'm waiting for the underwriter to give us a conditional approval. With that being said, will the underwriter not approve us because the Toll Road charged me $20? I haven't opened any new accounts or anything.

mrs.jacinthe · February 2012

No. Underwriters understand that you have to live your life and pay your bills, no matter whether you're buying a house or not. Unless the $20 dipped your balance into the red or something crazy, I don't see any reason why they'd care. It's the equivalent of spending $20 at the grocery store. They're not going to begrudge you that, either.

Aerowife2010 · February 2012

You can still use your credit card for your daily life. What underwriters are concerned about is you opening up new credit cards (such as the ones that many utilize because of the 0% financing for X number of months on large purchases) and buying new furniture/appliances/obtaining new debt before your closing.

alylove11 · February 2012

Phew! Thank you!! I was so worried because they have been running me around like a mad woman. I just purchased appliances on my dad's credit card, so we are safe.

Jen&Jeff06 · February 2012

Aerowife2010:
You can still use your credit card for your daily life. What underwriters are concerned about is you opening up new credit cards (such as the ones that many utilize because of the 0% financing for X number of months on large purchases) and buying new furniture/appliances/obtaining new debt before your closing.

Not entirely accurate.

I have lots of borrowers run up the balances on the accounts they currently have open, and not qualify. We pull a "soft credit" report prior to final approval, and it shows if there have been any recent inquiries. It also tells you the current balance and payment amount of your current accounts. If your balances go up, your monthly payment goes up, and THAT minimum payment is what you have to qualify with (not the balance on your original credit report).

If inquiries show up, we ask for a letter of explanation, and if new debt has been established, we need to know what the payment will be.

So, do not establish new credit, or make any large purchases on your current accounts

Underwriter and credit card

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