Closed some cards I don't use, want to make up for lost availible credit

[austinguy907]

There's a lot of rumors about morgages that are myths and not exactly as adverse as most think they will be.  So, the bank that does the mortgage will run your credit and probably ask some easy questions about changes prior to applying for the past yearr.  At the worst you might have to write a letter of explaination about the items they ask about for the file they build.  

The MOST important thing to do is while you're in the process aka after you apply and sign a contract DON'T APPLY or CHANGE anything as they could pull another CR while in process and some even do it after you close to put an updated CR in your file before they sell it on the market.  

So since you'll be talking about your recently closed accounts possibly you could conceivably get new accounts prior to applying but, I would concentrate more on CLI's on your remaining accounts to offest the closure and loss of credit limits that were padding your CR for utilization.  At least with the CLI's your impact will be lessened and the mortgage process will seem less invasive during your financial colonoscopy when you buy a place.  Once you have keys in hand you're free to apply for whatever you want but, that's when you should be scoping out some real cards like other mentioned instead of Lowe's or something that holds you captive to a single retailer.  Depending on your profile you might want to get a Visa/MC through a CU or shoot for something along those lines.

[Anonymous]

Lot of good info in this thread! As to credit cards to build mortgage lending relationships, the truth is you will likely mortgage rate shop and the best rates may come from a non-bank lender (depending on the mortgage market at the time) so keep the door open for shopping rates. Don't fall in love with the lender that originates the mortgage loan as there is a probability it will be sold. My mortgage is a little over five years old and has been sold four times. Food for thought.

[longtimelurker]

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@Anonymous wrote:
Lot of good info in this thread! As to credit cards to build mortgage lending relationships, the truth is you will likely mortgage rate shop and the best rates may come from a non-bank lender (depending on the mortgage market at the time) so keep the door open for shopping rates. Don't fall in love with the lender that originates the mortgage loan as there is a probability it will be sold. My mortgage is a little over five years old and has been sold four times. Food for thought.

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^^^ This.  Go through an internet mortgage broker, and if they give you the best rate from Little Bank of TinyVille, that's fine.

[Chickenpotpie]

OP I got my morgage in July.  I didn't app for anything, close anything for about 8 months prior to me starting the process.  Yes you really DO need to kinda cool it.

Say for instance if you plan on starting the process January 2017, make no other moves for now.  No new credit of ANY type, just coast and keep your credit house in top shape.  (that also means working to keep utilization as low as you can)  Let your cards give you cli's but to ask for them during that time. 

Check the mortgage boards here...lots of great informaton  with some fantastic people on there to help you prep for the process too.  I don't know any MB in AZ, I used one specific to the area I bought the house in (they came very highly recommended) and got me into the habit of sending my paperwork every month like clockwork.  Look for one that is willing to work with FHA, USDA, VA loans.  The last 2 can be no money down (the very last is for military) 

[driftless]

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@Stoneheavy wrote:

If I had my way I'd just keep the 4 cards and get big limits on them because I' don't use credit cards very much.  Once I get my house I may dump all but the AMEX and just use it for everything. It's the one I use the most.

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So why are you considering app'ing? Keep your eye on the prize - a mortgage and your own house.

[Anonymous]

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@longtimelurker wrote:

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@Anonymous wrote:
Lot of good info in this thread! As to credit cards to build mortgage lending relationships, the truth is you will likely mortgage rate shop and the best rates may come from a non-bank lender (depending on the mortgage market at the time) so keep the door open for shopping rates. Don't fall in love with the lender that originates the mortgage loan as there is a probability it will be sold. My mortgage is a little over five years old and has been sold four times. Food for thought.

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^^^ This.  Go through an internet mortgage broker, and if they give you the best rate from Little Bank of TinyVille, that's fine.

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In pursuing credit cards and mortgages I find it a shock when I see the havoc the selling of my mortgage raises with the credit scores. Loans shows as paid off and then bam a big new dollar amount appears with what looks like a new mortgage. Similar effect when buying and selling cars and the impact the pay off and purchase had at the CBs. Yes, the bureaus caught up but my scores were roller coasters for a while. As to the mortgage I referred to, it was placed with a brick and mortar small bank system and I figured they would keep it awhile (two years) and then the secondary mortgage market bought and ran with it.

[fittiger]

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@Chickenpotpie wrote:

OP I got my morgage in July.  I didn't app for anything, close anything for about 8 months prior to me starting the process.  Yes you really DO need to kinda cool it.

Say for instance if you plan on starting the process January 2017, make no other moves for now.  No new credit of ANY type, just coast and keep your credit house in top shape.  (that also means working to keep utilization as low as you can)  Let your cards give you cli's but to ask for them during that time. 

Check the mortgage boards here...lots of great informaton  with some fantastic people on there to help you prep for the process too.  I don't know any MB in AZ, I used one specific to the area I bought the house in (they came very highly recommended) and got me into the habit of sending my paperwork every month like clockwork.  Look for one that is willing to work with FHA, USDA, VA loans.  The last 2 can be no money down (the very last is for military) 

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Where do you live/where are you planning on buying a house?  Do some extensive internet research.  When I purchased my first home 4 years ago, there was a local grant program that I qualified for as a first time home buyer that gave me 5% of my cost toward the purchase.   It ended up covering all closing costs plus my FHA mortgage downpayment. 

[Stoneheavy]

I'm glad I asked.  I thought I would need to get some new cards to  make up for the ones I closed.  Now I'm not doing anything new at all!  I'm in the Phoenix area.

[SunriseEarth]

Since you're buying in about six months, I don't recommend doing anything that would put any HPs on your reports.   While I understand you want available credit to offset your closed accounts, new CCs will shorten your AAoA and you'll have the ding from the HPs.  

Personally, I'd SD the Total Rewards and the Cap One cards.   Perhaps consider closing once you've gone through the mortgage process.   One thing that is often overlooked in UTIL is having zero balances.   Ideally, more than half of your CCs should have zero balances, which is quite easy to do on cards you not longer find to be of use.  

As for your other accounts...AMEX, Discover, Amazon, and Chevron...all of them are with lenders known for giving SP CLIs.   When did you last request CLIs on those cards?   You can probably get both Amazon and Chevron to grow through the Chat feature.   If it's been more than 181 days since you successfully requested an AMEX CLI (auto-CLIs don't count), request 3X the CL.  Discover is often on a 90 day CLI schedule, but it's frequently less.   I'd hit the LUV button there, even though you got a CLI two months ago.  However, if you get to a point where they say they need to pull a report, I'd stop.  

[SunriseEarth]

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@Stoneheavy wrote:

My Chevron is a gas card, I don't have the visa version, though I suppose I could try to upgrade.  Good point on having a regular Visa.

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The upgrade would be a new TL.   While there's no HP to accept it, you'll drop your AAoA.  Plus, the upgrades are by invitation only.