How does A New Home Loan Affect FICO credit score?

[gabrielle]

I'm about to close in about a week on a 110K home. My husband and I are jointly buying it. Our credit history is that we have 4 year old credit card that reports to Equifax ONLY (go figure-- a credit union card) with a 3K limit which we owe $500 on. We got a capital one card in Feb. for a $500 limit which we owe nothing on. So now we have an average score of 720 on Equifax and TransUnion but our TransUnion score is only 8 months old. 

SO here's my question: how badly do you think our credit score will drop IMMEDIATELY? We've been waiting to close before buying a new car. Our score has already dropped to 705 because of all the lender inquiries. I've heard some people say it will just drop to 650-680 for the first three months until our first mortgage payments have been reported but I've also heard something about dropping to below 100 points or more. We'll probably be looking to buy the car a week or two after closing.

I've tried to get some answers but all the forums keep saying things like "oh, it depends on your score and other factors." and give no answers. That's not very helpful, I just want ranges not exact numbers. Thanks so much, guys.

[JM-AM]

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@gabrielle wrote:

I'm about to close in about a week on a 110K home. My husband and I are jointly buying it. Our credit history is that we have 4 year old credit card that reports to Equifax ONLY (go figure-- a credit union card) with a 3K limit which we owe $500 on. We got a capital one card in Feb. for a $500 limit which we owe nothing on. So now we have an average score of 720 on Equifax and TransUnion but our TransUnion score is only 8 months old. 

SO here's my question: how badly do you think our credit score will drop IMMEDIATELY? We've been waiting to close before buying a new car. Our score has already dropped to 705 because of all the lender inquiries. I've heard some people say it will just drop to 650-680 for the first three months until our first mortgage payments have been reported but I've also heard something about dropping to below 100 points or more. We'll probably be looking to buy the car a week or two after closing.

I've tried to get some answers but all the forums keep saying things like "oh, it depends on your score and other factors." and give no answers. That's not very helpful, I just want ranges not exact numbers. Thanks so much, guys.

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It isn't very easy to give ranges to your scores. But from my own personal experience when buying 1st home and having mortgage on credit reports I actually had a score increase. It wasn't very much about 12 points I believe, and was probably do to more of a credit mix. I have heard of others losing a few points for a few months and regain them after 6 months to a year. YMMV 

Keep in mind that once you close on the home and have keys in hand, wait about 2-3 days for funding to go through (you can call and ask if funding went through) once funding went through you can go purchase your new vehicle. You will not have any change in score until mortgage reports which is usually 30 to 90 days later after closing.

Congrats on home and Good Luck on new car purchase.

[Booner72]

Mine didn't report (wells fargo) for 3 months.  The score sim said I'd go down 30 points.  BUT, i apparently must have been rebucketed to someone w/ a mortgage bucket, and my scores went up 10 ish points.  Can't remember which exactly.

But now the score sim says I can get much higher scores than I could in my last bucket.

Good Luck and congrats on closing soon!

[luvsandyshores]

Did your score already change from the mortgage inquiries?  If so, there shouldn't be any other change from the mortgage until it reports to the CBs, which took mine 3 months (WellsFargo).  Unless your lender is going to pull again right before closing?  If you don't know if they'll pull your score again, you can call and ask.

I took out a car loan 2 weeks after closing on my house, and my score hadn't changed.

Congrats on the house, and good luck on the car!

[JagerBombs89]

My scores actually increases slightly with the addition of a Mortgage.