Financing -- Loans/Loan app

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Question
Hi,
I currently an in the process of refinancing my existing home loan under the harp program. My loan is currently in underwriting. For some reason I decided to go back through my loan app that the loan officer filled out and I realized that the loan app is missing a credit card if 4300. For some reason it is not showing up on my loan app. I am very confused as to why. Both mine and my husbands credit scores ok, 715 and 686. I don't  want this to jeopardize the loan process. Should I all the loan processor and make them aware of this mistake or should I just wait and see? Will they run another credit check prior to closing? He said it should be done in a few days and we should close in a week after. Why would that card not show up on this application? Thanks for your time.

Answer
You have a very valid question but probably not a huge cause for concern.  While you may have a credit card out there with a $4,300 balance, only the monthly payment that would be reported to the credit agencies is generally used for debt to income (DTI) calculations. It does however affect your overall outstanding debt and therefore decreases your net worth. It was not clear in your question though if this was the outstanding debt or available balance of $4300. Now if the $4,300 is the total available amount of credit on the card and your outstanding balance is small or none then you don't have to worry about the issue at all.  
There are multiple reasons a card may not have showed up on the application:

1. Only one credit agency was used to pull credit report and your credit card has not for whatever reason reported recently to this particular credit agency.

2. If it is a business credit card it may not be reported onto personal credit history

3. it may be only either in your name or your husband's name and the LO may not have properly imported the credit data into the application or

4. Only one of your credit reports and income to get the loan is being considered as it may be sufficient and stronger.  

If you are dealing directly with a lender then your credit report should not be pulled more then once during the process, however if it is a broker then there is a possibility that the lender may want to pull their own credit which they generally do early in the process.

Hope this was somewhat helpful.  

Financing -- Loans

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Michael Pechony

Expertise

Commercial loans through Banks, Fannie Mae, Freddie Mac, USDA, SBA, HUD, Life Companies, CMBS, Private Lenders, Specialty Lenders. I would be glad to answer questions about acquisition or refinance of a business, equipment financing, obtaining a line of credit, bridge and permanent financing for investment property such as multifamily, mixed use, owner occupied, student housing, hospitality, NNN, and retail

Experience

Principal at Anchor and Anvil, a boutique commercial financing firm. Previously: Senior Vice President of American Street Capital - commercial real estate financing firm. Managing Partner at Investment Street Capital - business financing firm.

Organizations
AUCCI

Education/Credentials
Northeastern Illinois University

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