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Valued Member
debz
Posts: 46
Registered: ‎05-22-2007
0

New Mortgage

I'm having a house built which should be done in July.  At the time I applied, my middle score was 621, now my middle score is 636.  My husband recently obtained a Wamu card with me as an authorized user.  We got approved with $2800 limit.  Will this new account make my credit score drop?
Established Contributor
so_confused
Posts: 630
Registered: ‎06-20-2007
0

Re: New Mortgage

It depends on your over all credit picture. some times adding a new line will reduce your overall utli. and bump your score. even with the small hit you may take for a new account or inq.
9/18/08 TU=707 EQ=706 EX=702
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: New Mortgage

How long has it been that you have added credit?
How long is your credit history (aveage age)
What is your current and new UTL?

debz wrote:
I'm having a house built which should be done in July.  At the time I applied, my middle score was 621, now my middle score is 636.  My husband recently obtained a Wamu card with me as an authorized user.  We got approved with $2800 limit.  Will this new account make my credit score drop?



Valued Member
debz
Posts: 46
Registered: ‎05-22-2007
0

Re: New Mortgage

I added a credit card 13 months ago.  I have had credit for 19 years.  I have 4 credit cards with a total credit line of $2800 and have a total balance of $156.  I know the mortgage company is going to run my report again right before we close, so I'm a little concerned how this will effect my score.
Established Contributor
so_confused
Posts: 630
Registered: ‎06-20-2007
0

Re: New Mortgage

so this new line doubles your current cl's?  How long had it been since you applied for a cc before this one?
9/18/08 TU=707 EQ=706 EX=702
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: New Mortgage

I would not be overly worried - Don't use the card.
WAMU posts to TU first 2-3 days after statement date.
 
Depending on when he got the card it might not be on there at all.

debz wrote:
I added a credit card 13 months ago.  I have had credit for 19 years.  I have 4 credit cards with a total credit line of $2800 and have a total balance of $156.  I know the mortgage company is going to run my report again right before we close, so I'm a little concerned how this will effect my score.



Valued Member
debz
Posts: 46
Registered: ‎05-22-2007
0

Re: New Mortgage

Applied for cap 1 in June and was approved for $750.  I have a total of 10 inquiries in 2 years, 2 inquiries in 2007.  I applied for these cards thinking they would improve my score with a higher utilization.  It may have backfired.
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: New Mortgage

You added a TL with no INQ that is the good part.
Did you try the FICO simulator?
 

debz wrote:
Applied for cap 1 in June and was approved for $750.  I have a total of 10 inquiries in 2 years, 2 inquiries in 2007.  I applied for these cards thinking they would improve my score with a higher utilization.  It may have backfired.



Valued Member
debz
Posts: 46
Registered: ‎05-22-2007
0

Re: New Mortgage

Yes, it gives me a range of 636 - 661.  I'm currently at 636.   So either it will have no impact or a positive impact if the simulator is correct.
Regular Contributor
OneMortgageGuy
Posts: 255
Registered: ‎06-08-2007
0

Re: New Mortgage

It's up in the air if it even matters. I know that some company's will not repull your credit but if the report expires then they will repull it. For my company a Prime CR is good for 120 days and Subprime is good for 60 days. How long did the lender say your rate lock was good for and did they even lock your rate?
 
Did the lender give you a good faith est? If so study it and bring it with you to the closing!!! Too many time I have had customers tell me about changes at the last min. Many not be a big deal but you need to thing about the future. I have had borrowers get screw and get stuck. When I say borrower I mean someone who has taken a application with me so screw by me!!
 
If your loan is not what they told you DO NOT SIGN!!!!!!!!! Make them fix it and I know they will.
 
Things to look for and remember at the closing....
  1. The "NOTE". This will give you the rate, term, and if it has a prepay.
  2. HUD or Settlement Statement. This will give you all the fees.
  3. Once you are done signing... The deal is sealed and not like a refi where you have 3 days to cancel.
  4. Repeats steps 1,2, and 3. Sound like a song... hmmm

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