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Established Member
Posts: 38
Registered: ‎06-06-2013
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Paying off credit cards

So my mortgage company asked me to close most all of my credit cards so that I can get my DTI to an acceptable percent. So my question is does anyone no how much my credit scores will be affected I had to close 6 cards.

Valued Contributor
Posts: 1,738
Registered: ‎08-13-2012
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Re: Paying off credit cards

Why the mortgate company want you closed all your credit card ???? that's kinda weird


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Contributor
Posts: 223
Registered: ‎06-28-2013
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Re: Paying off credit cards

In the short term it won't depending on your util. What matters is not really how many cc you got open (up to certain minimun), but the util. If you close some accounts that might might not change your util. if you are applying for a mortgage try to have 0% util on all your credit cards until you close and sign the papers.




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Posts: 26,763
Registered: ‎02-07-2013
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Re: Paying off credit cards


nicholasyud wrote:

Why the mortgate company want you closed all your credit card ???? that's kinda weird


+1 never heard of this policy to approve a mortgage...



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Contributor
Posts: 223
Registered: ‎06-28-2013
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Re: Paying off credit cards


nicholasyud wrote:

Why the mortgate company want you closed all your credit card ???? that's kinda weird


There's 2 things, one he might have way too mych credit for his income, and they are worried he might go crazy and the house will end with a lien, and 2 he might have a high util, and they want some of the creditors to be taken care of before they are willing to lend him the money. It's just my guess since I don't know the exact situation, either he got too much credit for his income or has too high util, or both or some other factor I'm missing.




Gardening until 03/11/15 last mistake ,,, 07/05/2013

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Valued Contributor
Posts: 1,597
Registered: ‎09-15-2012
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Re: Paying off credit cards

I would look for a new lender. Mortgage companies are hit and miss, IMO. Go to a bank or credit union and see if they can get you a loan without closing your cards. But you will almost certainly have to pay your cards down to $0 or close to it if you carry balances.

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New Contributor
Posts: 351
Registered: ‎06-02-2013
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Re: Paying off credit cards

Close 6 cards? What does your credit profile look like? That sounds crazy to me because unless you are severely over extended right now, that is an outrageous request by a mortgage company.

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Senior Contributor
Posts: 3,906
Registered: ‎10-02-2012
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Re: Paying off credit cards

@Kutuzov do all mortgage lenders look and make sure that you dont have more credit than what you earn?

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Valued Contributor
Posts: 1,339
Registered: ‎09-11-2012
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Re: Paying off credit cards

I would lol@ lender and move on. Unless that is the only lender that approve you. If that the case it's not the right time for you to buy.
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12/19/2013, $100k+ Available Credit. Total Util: 0-1%
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Posts: 27,206
Registered: ‎09-13-2012
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Re: Paying off credit cards

Closing that many cc's seems odd to me. What is your current util? Are you perhaps buying too much house ?
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