I just got pre-approved for a home loan.....

[Anonymous]

I just got pre-approved for a home loan.  The lender said its good for up to 90 days.  Does anyone foresee a problem if I apply for a credit card now?  i.e. Will applying for a credit card mess up my chances of getting the loan.  My understanding is that since the lender already did the hard inquiry of my credit file for the pre-approval another inquiry is not going to mess up the pre-approval.

Anyone have advice with my situation.....?

THANKS!!!!!

[PixieQueen80]

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@Anonymous wrote:

I just got pre-approved for a home loan.  The lender said its good for up to 90 days.  Does anyone foresee a problem if I apply for a credit card now?  i.e. Will applying for a credit card mess up my chances of getting the loan.  My understanding is that since the lender already did the hard inquiry of my credit file for the pre-approval another inquiry is not going to mess up the pre-approval.

Anyone have advice with my situation.....?

THANKS!!!!!

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My lender told me NOT to apply for any new credit after I was pre-approved.  Also even though you have 90 days on the credit report it might take longer than that (mine did but it was a new build).  Also tif there are new charges to the credit card they will be factored into your DTI ratios and lower your loan limit. 

[mamahearts]

Yes do not apply for new credit during the application process.  Wait until after your loan funds (after closing).  It will bring down your score because inquiries.

[Anonymous]

bingo, what they said, but clearify with your lender, is the pre-approval good for 90 days or the credit report.

I had to check with my lender (credit union) and they said pre approvals are good for 90 days and my credit report is good for 120 days.

[namvet]

The pre-approval is usually good for 90 days however all documents will need to be updated if over 30 days.  Do not apply for any new credit for at least 6 months prior to a mortgage loan application.  Also do not add any new debt to existing accounts. 

[notmyj]

Just as everyone else said, DO NOT apply for new credit. DO NOT use any existing credit until the mortgage is closed and funded. After the house is yours you can go app crazy. Till then don't use any cards. Keep paying them down as that could only help things. Using credit could easily kill a credit score and prevent a mortgage from closing.

[Anonymous]

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@namvet wrote:

The pre-approval is usually good for 90 days however all documents will need to be updated if over 30 days.  Do not apply for any new credit for at least 6 months prior to a mortgage loan application.  Also do not add any new debt to existing accounts. 

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+1 on this one from namvet. Our LO gave us this exact verbiage. Per our lender all required documents need to be updated every 30 days up until closing, specifically bank statements and paystubs with one final credit pull(1 for preapproval as well) prior to loan funding. This could vary, so not sure with your lender. Definitely ask lender what their requirements are regarding this situation. Always better to be up front and ask to be sure, so your not stung on the backend, if at all.

[Booner72]

Toward the end of the loan process you will be signing documents saying you have not applied for any new credit or racked up any new debt.  It's definitely frustrating to have your financial life on hold through the process, but it's a must.

[Revelate]

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@Anonymous wrote:

I just got pre-approved for a home loan.  The lender said its good for up to 90 days.  Does anyone foresee a problem if I apply for a credit card now?  i.e. Will applying for a credit card mess up my chances of getting the loan.  My understanding is that since the lender already did the hard inquiry of my credit file for the pre-approval another inquiry is not going to mess up the pre-approval.

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I'm curious, what do you want with another card right now anyway?

Absolutely do not apply for another card until after your loan funds under any circumstances (well non-health/life-threatening at least, those > house).  Lenders, especially their UW's, like predictability... applying for more credit is *never* predictable behavior as far as any lender is concerned.

[frogfan12]

Do not apply for any new credit PERIOD until after you have keys in your hand. Even after I had keys in hand, I did not apply for any new credit for 2 months afterward.