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I'll start by saying I know I made a really bone headed move. In excitement for our new home, I bought a new lawn mower and signed up for the store credit card to save 10%. We are still in underwriting for the loan.

How bad is something like this?

Is there anything I should do?

Thank you so much for any help!

Edit:

I am in the United States.
I was told underwriting should be completed the day after the new credit card was opened. About 20 days in to a 30 day process.

  • What country. When was the Home Loan processes started, when was the store card applied ... can you put some timelines. – Dheer May 27 '14 at 4:37
  • You might be ok. It all depends on when the card is reported to your credit bureau. Sometimes it takes 30 days. Didn't your realtor tell you not to take out any new debt? You did make a bonehead mistake and a very naive one. – Brian May 27 '14 at 13:20
  • Thanks staticx. The realtor did tell us that, but right up to the moment of hitting submit on the in store application, saving the $300 blocked it out. As soon as I hit submit I started panicking and regretting it. – Matt May 27 '14 at 14:25
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Be prepared for a delay in closing. You have modified your credit situation which may concern the mortgage lender, you may have also deceived the store if you didn't disclose the new mortgage you were in the process of getting. You need to address this with your real estate agent.

One scenario is they will discover the new credit card, and ask for you to write a letter describing the situation. They may need to re-approve the mortgage based on the new numbers, they will also be concerned that the $3,000 purchase will impact your ability to make the down payment.

They might not discover the new credit card; but at the closings I have been involved in this potential gap was covered by them asking if there were changes in bank account balances, loans and credit cards. You will either have to disclose it at closing, or lie about it. I suggest you tell the truth.

The large purchase just before closing, even if a new credit card was not involved, could cause the lender to be concerned. It would have impacted the other debt number, or reduced the amount in savings.

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