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Frequent Contributor
Posts: 260
Registered: ‎11-10-2011
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Mortgage and new trade lines

Is the 6 month rule for no new trade lines prior to mortgage preapproval absolute? I got a ussa card in July and my SO got a bce last month for groceries. We both have mid 700 scores and make a decent income. Just wondering if this will hold us back.


Starting Score: 617 EQ 10-17-11
Current Score: EQ 767 TU 769 EX 749 (all FICO but who really knows?)
Goal Score: 800


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Established Contributor
Posts: 866
Registered: ‎09-22-2011
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Re: Mortgage and new trade lines


Jake0215 wrote:

Is the 6 month rule for no new trade lines prior to mortgage preapproval absolute? I got a ussa card in July and my SO got a bce last month for groceries. We both have mid 700 scores and make a decent income. Just wondering if this will hold us back.

If you want to get a better rate then yes it's absolute.  YMMV depending on your fico score.  If your scores are marginal then it's best to follow the 6 month rule. If you have very high fico scores (750+) then not so much of a problem.

 

Frequent Contributor
Posts: 260
Registered: ‎11-10-2011
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Re: Mortgage and new trade lines


namvet wrote:

Jake0215 wrote:

Is the 6 month rule for no new trade lines prior to mortgage preapproval absolute? I got a ussa card in July and my SO got a bce last month for groceries. We both have mid 700 scores and make a decent income. Just wondering if this will hold us back.

If you want to get a better rate then yes it's absolute.  YMMV depending on your fico score.  If your scores are marginal then it's best to follow the 6 month rule. If you have very high fico scores (750+) then not so much of a problem.

 

What about FHA where the rates are generally locked, correct?

 


Starting Score: 617 EQ 10-17-11
Current Score: EQ 767 TU 769 EX 749 (all FICO but who really knows?)
Goal Score: 800


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Established Contributor
Posts: 536
Registered: ‎05-16-2012
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Re: Mortgage and new trade lines

[ Edited ]

Jake0215 wrote:

Is the 6 month rule for no new trade lines prior to mortgage preapproval absolute? I got a ussa card in July and my SO got a bce last month for groceries. We both have mid 700 scores and make a decent income. Just wondering if this will hold us back.


Nope! I just got 4 new cards (2 USAA) in July and another new card (USAA) will post in a couple weeks. My loan officer, who is a former underwriter, didn't bat an eye... she said I'll just need to explain to the underwriters that it was for bolstering my credit profile. .. My middle score was 702

FICO 08 EX: 802 EQ: 780 TU: 804

Total Credit Lines: $133,700
Valued Contributor
Posts: 1,115
Registered: ‎10-31-2011
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Re: Mortgage and new trade lines

Just whatever you do DONT open a new TL while in the mortgage process

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New Visitor
Posts: 1
Registered: ‎11-09-2012
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Re: Mortgage and new trade lines

Is there a way I can have your LO name?

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Mortgage and new trade lines

[ Edited ]

specialk30 wrote:

Is there a way I can have your LO name?


Welcome! Unfortunately lender's names and contact info cannot be posted publicly. ETA....while it's unadvisable to open new accounts prior to the mortgage because of the score drop in most cases, some lenders really don't care that much depending on your credit. If you have one giving you grief, either let it age or find another lender and you'll be good to go.

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
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Re: Mortgage and new trade lines

If you are going to go conventional, it is a bad idea to open a new account because it could lower your score putting you in a new credit teir and messing up your rate.

 

If you are going FHA, just be careful if you close to the FHA min score.

 

If you have an 800 score and going FHA, opening a new account would be a non issue.

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