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Contributor
Posts: 85
Registered: ‎06-03-2013
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How long is something considered "New Credit" before a mtg loan?

I want to get a home in the next year or so.  I am getting my credit repaired and the only way I can see to do that at this point is to try and buld my credit as I don't think I am going to get my paid KS tax lien removed from my CR.  I wanted to get a couple more credit cards and go to the garden. My question is, if I go to the garden in the next couple weeks how long should I stay there before applying for a mortgage?   If I apply do that not want any new cards or new credit in the past 6 months, 9 months, 1 year? 

Thanks


4/13 CS from TU 599 11/3/13 Current FICO TU: 672, EQ 680
Negs: BK charged-off Jan '09, KS tax lien PAID, but still trying to figure out how to get it removed and 10 IIB accounts
Happiness: Merrick $750  |  Cap One $300  |  USBank $300  |  Victoria's Secret $500  |  The Buckle $250  |  JCrew $250  |  Express $250  |  Cap One $2000(AU)  |  Fingerhut $850 | Kohls (AU) $3000
Goals are 760 to buy a home & to stay in the Garden til 2/14
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: How long is something considered "New Credit" before a mtg loan?

It really doesnt matter. The real problem comes when your in underwriting and get a new card.

Established Contributor
Posts: 828
Registered: ‎12-09-2012
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Re: How long is something considered "New Credit" before a mtg loan?


PrettyPeacock wrote:

I want to get a home in the next year or so.  I am getting my credit repaired and the only way I can see to do that at this point is to try and buld my credit as I don't think I am going to get my paid KS tax lien removed from my CR.  I wanted to get a couple more credit cards and go to the garden. My question is, if I go to the garden in the next couple weeks how long should I stay there before applying for a mortgage?   If I apply do that not want any new cards or new credit in the past 6 months, 9 months, 1 year? 

Thanks


Ideally you wouldn't have any new inquiries or significant debt within 6 months of applying for a mortgage.  However, it depends on your file - what your DTI is and what your scores look like, etc.

If you need to open accounts, or request credit line increases, you should do so as soon as possible.  Just don't run up huge balances on the new cards. 

Contributor
Posts: 85
Registered: ‎06-03-2013
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Re: How long is something considered "New Credit" before a mtg loan?

Thanks.  I don't have any problem with the 6 months, I just didn't want to have to wait too long to apply for a mortgage.  I can do 6 months. 

On the road to success.  Whoohoo


4/13 CS from TU 599 11/3/13 Current FICO TU: 672, EQ 680
Negs: BK charged-off Jan '09, KS tax lien PAID, but still trying to figure out how to get it removed and 10 IIB accounts
Happiness: Merrick $750  |  Cap One $300  |  USBank $300  |  Victoria's Secret $500  |  The Buckle $250  |  JCrew $250  |  Express $250  |  Cap One $2000(AU)  |  Fingerhut $850 | Kohls (AU) $3000
Goals are 760 to buy a home & to stay in the Garden til 2/14
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