So your’re just referring to a hard pull credit inquiry and not an open loan. If it was an open loan it would have a payment associated with it. An inquiry just shows that your credit was pulled and by whom. That will not affect your DTI.
I think you misunderstood. The hard pulls showed up as open loans with a payment associated with my pre-approval. My additional loan applications were denied because of this. It was easy to take care of just a nuisance.
No, I understand exactly what you are saying. It’s just extremely unusual. I applied to two different lenders while going through NACA and they did hard pulls to determine interest rate and DTI. But nothing is going to show up as an open loan until the loan has been funded and that doesn’t happen until after you have signed your closing docs. It is extremely odd and would be an issue for the credit reporting agencies if it happened as a result of a loan application for pre-approval.