Desire to Purchase a second home

[Anonymous]

Hello,

I'm new to the forums as I just began reading them this morning in my search for some guidance.  My husband and I have recently relocated to another state and have rented an apt. temporarily while we figure out what area we would like to purchase a house in.  We have a house in our old location which we are attempting to rent out right now since the market is sooooo jacked up for sellers.  In addition, we have a home equity loan on the house.  Both of these are in my name solely because at the time his credit was jacked.  I didn't pull my FICO score within the last year but I did get my credit scores from the three agencies.  My numbers range from 760s to 790s...I was really ticked because the last time I pulled my FICO I was at 802 and the plan, of course is to go higher, not lower.  Anyway, nowadays my husband also has better credit, 740s to 780s, and wants us to do this loan together so that we can get approved for a higher amount.  As much as I want us to be able to afford a nice home, I'm hesitant to put my credit on the line again for fear it will only lower my credit scores even further.  Any advice? 

[river]

If your scored are in the 800 *range* I don't think you have to worry about the ramifications of applying for a home loan. Inquiries won't drop you too hard and buying R/E and a home is one of the best wealth building activites you can do (imho). So who cares if you drop a couple of points--It may not hurt you at all--as long as you can handle the new mortgage along with the old ones.

On a side note, your husband may be able to get a better rate since he technically doesn't own a "primary residence" yet. I am assuming the old house in in your name from your note.

good luck

[Anonymous]

agreed, you are in an excellent situation as far as scores are concerned. as long as you income is such that you can "handle" both mortgages you should have no problems at all getting another one at a fantastic rate. If you are that concerned about your scores, check your utilization on you revolving accounts and see if you can lower it a bit. everything should be under 30% if possible but the best score jump will occur if you get below 10. if that is already the case then i wouldn't worry too much, your scores are awesome.