One mortgage condition asks about a recent credit inquiry. The culprit? The mortgage lender itself.
Sometimes mortgage underwriting produces a situation so circular that all you can do is laugh.
A borrower was getting close to closing when a new condition appeared:
Please explain the recent credit inquiry.
Reasonable request.
Except the inquiry came from the mortgage process they were already in.
Yep.
The lender was effectively asking the borrower to explain why the lender had pulled the borrower’s credit.
The setup
Recent credit inquiries matter during mortgage underwriting because they can sometimes indicate that a borrower opened new debt after the original application.
That new debt could affect debt-to-income ratios, available funds, or overall qualification.
So underwriters may ask borrowers to explain inquiries appearing on the credit report.
Normally, that makes sense.
This time, however, the answer was almost comically simple.
The inquiry was from the mortgage lender.
The explanation
The borrower still had to respond.
Something along the lines of:
“This inquiry was related to my current mortgage application.”
And that was basically it.
No secret auto loan.
No new credit card.
No financing for a boat three days before closing.
Just the mortgage lender checking credit for the mortgage lender.
Why this happens
Mortgage files are touched by a lot of systems.
Credit reports update. Automated tools flag activity. Different departments review different parts of the file. Sometimes the person clearing the condition is simply following a required process and needs a written explanation in the file.
From the borrower’s perspective, though, it can feel like the mortgage industry has briefly become a sketch comedy show.
Underwriter’s Take
A recent credit inquiry can be important.
The concern isn’t the inquiry itself. It’s whether the inquiry resulted in new debt.
That’s why a borrower may be asked to explain it even when the answer seems obvious.
The easiest conditions are the ones with easy answers.
And this one had a pretty good answer:
“That was you.” 😂
Condition cleared.
Mortgage guidelines and lender requirements can change. This article is general education, not financial, legal, lending, or appraisal advice. Confirm requirements for your situation with an appropriate qualified professional.
