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Message
Unapproved Credit Inquiry While Purchasing House
Posted on 2/1/15 at 11:45 am
Posted on 2/1/15 at 11:45 am
So here is the situation:
The wife and I are closing on a house at the end of February. We went to a furniture store yesterday to shop around. The saleswoman says that if we put down a deposit they can hold any furniture we choose and not run a credit check (12 months interest free financing) until after the closing on our house. (I assume this is pretty common place, but I'm not positive.)
I told her that we can go through with it but only if they DO NOT run a credit check until later. She assured me that they would not run a check until after I call and notify them that the house was closed.
Well I wake up this morning and have an email notifying me that a new inquiry is on my report. The inquiry is with a finance company that they use.
I spoke with my mortgage guy and he said it shouldn't be an issue because our DTI ratio is so low, but if we were the other 90% of his clients then we probably would have just lost the financing for the house we were trying to buy.
So my question is what kind of recourse do I have with the furniture store?
What would you feel is an appropriate remedy for this situation? Because although it shouldn't affect our financing, it will still cause a headache explaining this to the underwriter.
The wife and I are closing on a house at the end of February. We went to a furniture store yesterday to shop around. The saleswoman says that if we put down a deposit they can hold any furniture we choose and not run a credit check (12 months interest free financing) until after the closing on our house. (I assume this is pretty common place, but I'm not positive.)
I told her that we can go through with it but only if they DO NOT run a credit check until later. She assured me that they would not run a check until after I call and notify them that the house was closed.
Well I wake up this morning and have an email notifying me that a new inquiry is on my report. The inquiry is with a finance company that they use.
I spoke with my mortgage guy and he said it shouldn't be an issue because our DTI ratio is so low, but if we were the other 90% of his clients then we probably would have just lost the financing for the house we were trying to buy.
So my question is what kind of recourse do I have with the furniture store?
What would you feel is an appropriate remedy for this situation? Because although it shouldn't affect our financing, it will still cause a headache explaining this to the underwriter.
9
Posted on 2/1/15 at 11:52 am to SLafourche07
You probably don't have much recourse besides opting not to buy furniture at that location. The one thing you could do is write letters to the bureaus asking them to take the inquire off and just explain what happen.
Honestly, it's not worth taking it much further over an inquire. I'd be happy that it didn't have any issue with your financing of your new house.
Honestly, it's not worth taking it much further over an inquire. I'd be happy that it didn't have any issue with your financing of your new house.
Posted on 2/1/15 at 12:07 pm to SLafourche07
I assume you filled out and signed a credit app?
If so, you have no recourse but to back out of your furniture deal or use it as leverage for a better deal.
never fill out an app until you want it run, The deal will still be there later.....
If so, you have no recourse but to back out of your furniture deal or use it as leverage for a better deal.
never fill out an app until you want it run, The deal will still be there later.....
Posted on 2/1/15 at 12:07 pm to SLafourche07
Did you get the name of the salesperson? I'd go talk to the store manager and raise all sorts of hell.
I guess you could file a dispute with the credit bureaus. But if you signed something authorizing the credit run, and did not have anything on there in writing that they were to wait, I'm not sure what you can do there.
I guess you could file a dispute with the credit bureaus. But if you signed something authorizing the credit run, and did not have anything on there in writing that they were to wait, I'm not sure what you can do there.
Posted on 2/1/15 at 12:10 pm to misterc
quote:
I assume you filled out and signed a credit app?
Yes, and that is my fault. I was too trusting that they would not screw it up.
quote:
back out of your furniture deal or use it as leverage for a better deal.
That is what I will try to do.
quote:
never fill out an app until you want it run, The deal will still be there later.....
Lesson learned and will not be repeated.
Posted on 2/1/15 at 3:22 pm to SLafourche07
quote:
what kind of recourse do I have with the furniture store?
Since it didn't actually hurt you, you really don't have any legal recourse. All you can do is raise hell with the manager.
Posted on 2/1/15 at 3:33 pm to SLafourche07
Don't you think you should move on with your life. No harm was done. Why would you back out on your purchase price.
Why do people add drama to situations just to make their lives more hectic.
Have your guy call the mortgage company and make sure things are ok...if so, move on.
There was NO reason to fill out a credit app and leave the deposit. Still not sure what you thought they would do with it.
Why do people add drama to situations just to make their lives more hectic.
Have your guy call the mortgage company and make sure things are ok...if so, move on.
There was NO reason to fill out a credit app and leave the deposit. Still not sure what you thought they would do with it.
Posted on 2/1/15 at 4:09 pm to GeeOH
quote:
Don't you think you should move on with your life. No harm was done. Why would you back out on your purchase price.
I agree in this case that no harm was done (assuming it really doesn't hurt the loan app, which is actually up to the underwriter). But if he was given incorrect information, it needs to be brought to the store's attention. If for no other reason, to hopefully prevent it happening to another customer.
That's what I would do. The manager's response to my concern would determine if I continued with the purchase or asked for my deposit back and took my business somewhere else. I would be more concerned with a sincere apology and promise to train the employee than I would care about getting some sort of a discount.
Posted on 2/1/15 at 4:16 pm to SLafourche07
quote:
I spoke with my mortgage guy and he said it shouldn't be an issue because our DTI ratio is so low, but if we were the other 90% of his clients then we probably would have just lost the financing for the house we were trying to buy.
That seems more dicked up than anything else in the story.
Posted on 2/1/15 at 4:48 pm to foshizzle
quote:
Since it didn't actually hurt you, you really don't have any legal recourse. All you can do is raise hell with the manager.
Yeah, as long as it really doesn't hurt us with our loan I'm not overly concerned with it. I just want to make sure they are aware of their mistake. If they are unapologetic about it then I may cancel my order, but I hope it doesn't come to that.
Posted on 2/1/15 at 4:57 pm to GeeOH
quote:
There was NO reason to fill out a credit app and leave the deposit.
In hindsight you are correct, but the wife (no pics) found some stuff she liked and I didn't feel like going furniture shopping again in a month if the items were discontinued (one already was).
quote:
Still not sure what you thought they would do with it.
Exactly what they said they would. No more. No less.
I was told that this was very routine and they would hold on to the credit app and once I called them and let them know the house was closed they would turn in the app.
Posted on 2/1/15 at 6:49 pm to SLafourche07
I would just tell the furniture people to stick it. They could have f'ed up your deal. Now walk.
Posted on 2/1/15 at 6:51 pm to SLafourche07
quote:
I spoke with my mortgage guy and he said it shouldn't be an issue because our DTI ratio is so low, but if we were the other 90% of his clients then we probably would have just lost the financing for the house we were trying to buy
I'm having a hard time believing you. If it didn't hurt you at all, why are you on money talk looking for recourse?
Posted on 2/1/15 at 9:28 pm to SLafourche07
so are you thinking that them pulling your report is going to drop your score enough to change the decision? because that probably won't happen. each time they pull it doesn't drop it much, if at all.
Posted on 2/1/15 at 9:46 pm to Hermit Crab
quote:
so are you thinking that them pulling your report is going to drop your score enough to change the decision? because that probably won't happen. each time they pull it doesn't drop it much, if at all.
I'm in the process of buying a house and even though we both have 760+ credit scores and solid DTI, the lender said don't open up any more lines until you close on the house.
Posted on 2/1/15 at 9:59 pm to Golfer
yeah I wouldn't go out and buy $20K of furniture on credit right before i applied for a home loan, but just them pulling the score really wont make any difference.
The mortgage underwriters I have worked around in my experience aren't the sharpest tools in the shed. They probably wouldn't even notice that you recently had your report pulled by a furniture store. assuming the account wasn't actually opened.
The mortgage underwriters I have worked around in my experience aren't the sharpest tools in the shed. They probably wouldn't even notice that you recently had your report pulled by a furniture store. assuming the account wasn't actually opened.
Posted on 2/2/15 at 6:54 am to SLafourche07
If you filled out a credit app then you authorized them to pull credit. Consider it a lesson learned.
Posted on 2/2/15 at 8:13 am to SLafourche07
quote:
She assured me that they would not run a check until after I call and notify them that the house was closed.
Seriously - a single credit inquiry is worth 2 or 3 points off your credit score. I understand if you're close to a break line, but this shouldn't be the end of the world.
I understand the trust side of it, but this isn't that big of a deal from an objective, credit score standpoint, IMHO.
Posted on 2/2/15 at 9:20 am to Hermit Crab
quote:
so are you thinking that them pulling your report is going to drop your score enough to change the decision? because that probably won't happen. each time they pull it doesn't drop it much, if at all.
Score-wise, I agree. But with a mortgage they are looking at more than score.
We are buying a new house and just this past Friday, the underwriter asked us to sign a statement listing any new inquiries we've had in last 120 days. (not just new accounts, but inquiries). We signed that the only ones were for the mortgage application, and sent it in.
Let's say we were in the OP case. OP had a credit monitoring service, and knew about the pull. Let's aay that happened to us, and we didn't have a monitoring service. If the underwriter pulls our credit again right before closing (which they told us they sometimes do) and sees the inquiry, are they going to think we liked on that form when we did not disclose it? We could probably get over that, but it's an added complication.
Posted on 2/2/15 at 10:10 am to SLafourche07
quote:
but the wife (no pics) found some stuff she liked and I didn't feel like going furniture shopping again in a month if the items were discontinued (one already was).
I would definitely complain about it. The salesperson was either dishonest or incompetent and could have screwed up your mortgage.
If you want to go with this furniture then use this screwup as a way to negotiate an even better price. Tell them you will walk unless they knock another $______ off.
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