Mortgage Loans

[essex]

I obtained a mortgage committment and one of the conditions is that a credit documents must be updated and review if I do not close by Oct 30.  I am told that another credit report will not be ordered.

Would you recomment obtaining a credit card (from a pre-approved offer) now assuming that my score may change after my mortgage closes and starts to report to the bureaus.  My scores are currently 634, 659, and 699.  The other part to this is that my score is being help by an account that I am an authorized user on.  My father's payment history and the length of his history is helping me.  I know that scoring will change in September.

Any thoughts?

Message Edited by essex on 08-28-2007 06:33 PM

[George2037]

Someone correct me if I'm wrong but I think your score will actually go up or be unchanged by a new/ First Mortgage.  It may go down for the first 2-3 months, but go right back up, buying real estate is a good thing in CC company's eye's......

[Tuscani]

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George2037 wrote:

Someone correct me if I'm wrong but I think your score will actually go up or be unchanged by a new/ First Mortgage.  It may go down for the first 2-3 months, but go right back up, buying real estate is a good thing in CC company's eye's......

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Correct

[George2037]

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George2037 wrote:

Someone correct me if I'm wrong but I think your score will actually go up or be unchanged by a new/ First Mortgage.  It may go down for the first 2-3 months, but go right back up, buying real estate is a good thing in CC company's eye's......

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Correct

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I learned that from the forums

I've been looking into buying a cheap peice of land just so i can have the Real Estate show up on my CR.  Lot's of it in NO, and whew anyone seen how cheap that marsh land is in Florida

[digitu]

I would wait just to be safe because from what I understand the mortgage co's usually pull your credit again right before you close to make sure you there haven't been any significant changes (ie. purchasing a bunch of furniture, buying a car, etc). Granted even if you don't charge any thing with the CC, if they give you a really high limit the lender might come back w/some BS saying now you have too much available credit at your disposal and theres a possibility you might use that available credit, (which would throw off your debt to income ratios) and then you might not be able to pay for the mortgage.

[devhip]

I'd be very surprised if your credit didn't get pulled again. If you're with a broker and not dealing directly with a lender, count on several pulls as they shop you around. Even if you have a pre-approval, many brokers will have other lenders on the backburner. I just closed in July. I was told the same thing, that they wouldn't pull me again. Of course, they did. I had no worries, and really you shouldn't either, unless you anticipate a bunch of bad stuff hitting your file, in which case home shopping wouldn't be a good move right now anyway.

Message Edited by devhip on 08-30-2007 10:20 AM

[netpanther]

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digitu wrote:
I would wait just to be safe because from what I understand the mortgage co's usually pull your credit again right before you close to make sure you there haven't been any significant changes (ie. purchasing a bunch of furniture, buying a car, etc). Granted even if you don't charge any thing with the CC, if they give you a really high limit the lender might come back w/some BS saying now you have too much available credit at your disposal and theres a possibility you might use that available credit, (which would throw off your debt to income ratios) and then you might not be able to pay for the mortgage.

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After mortgaging two houses and refi on one, I can definitly tell you that they re pull your scores and yes, do not open a new CC. Just like digitu wrote- some people jump the gun and go out and finance furniture, etc. and throw off their DTI' ratios.

do not do it.