Consolidate credit cards while home shopping?

[Anonymous]

Hi!

I am prequalified with a lender for a home loan and have been looking for 6 months. In the meantime I have been considering consolidating all of my credit card balances with a personal loan (Probably Prosper). I am wondering if I do so - will this change my approval status? It will be the same amount I owe just in a personal loan instead of credit cards (We're talking about $14k). It would be desirable for me because of the lower interest rate, steady payment amount, and not having to keep track of multiple payment due dates, etc.

Any thoughts on the impact to home loan approval re: personal loan vs multiple credit card balances?

1. Credit score: 680
2. Income: 85k
3. Source of income: Salaried Employment
4. Monthly debt payments: $500
5. Employment: Full-time job
6. $5k
7. Snohomish County, Washington
8. Single family house wanted.
9. Value: 315k
10. Occupancy: Primary residence
11. Transaction Type.  Purchase

[tianapb725]

Do not open any new accounts during the home buying process.  It doesn't look good as it will lower your credit score because of an inquire and lowering the average age of accounts.  If your DTI is okay during the preapproval process, wait to consolidate after the home loan is closed.

[Anonymous]

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@tianapb725 wrote:

Do not open any new accounts during the home buying process.  It doesn't look good as it will lower your credit score because of an inquire and lowering the average age of accounts.  If your DTI is okay during the preapproval process, wait to consolidate after the home loan is closed.

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+1