Mortgage lenders worrying about your high limit credit cards?

[Anonymous]

Some of you may have read my other thread titled something like "Too Much Credit Misconception."  It was suggested that I post it here, and I think it was a good suggestion.

I do want to add a few disclaimers just to be clear:

1.  I'm not looking for a home, and I don't have a mortgage. 

2.  My total CL across 5 cards is a little over $10k

3.  I don't ever plan on purposely getting an excessive amount of credit via credit cards.

So, with that out of the way, here's why I'm posting.

I'd like to know if anyone has experienced any problems or bumps in the road with a home loan (getting it, getting your rate, anything) because the lender was uncomfortable with the CL available to you from your credit cards.

I ask because my girlfriend's father recently told her that too high of a CL across all of your credit cards could negatively impact your ability to get a home loan (or any loan I suppose).  I couldn't see the logic behind this, and I immediately shot it down as a possibility (dumb on my part), but a few MyFico members explained how it can and has happened in the past.

[Anonymous]

I had near $40K in credit limit across nine accounts, but was only using 3 of those regularly with a utilization below 20% (yes I know, <9% is best).  So, in my case it wasn't a problem.

I have heard that some loan officers will add the minimum amount due to each of those cards if you maxed them out to your DTI calcuation to see if you could handle that.  Again, that was not done in my case.  But perhpas if someone wsa borderline, they'd do this math.

[Walt_K]

My understanding of this is that you should not close down cards or reduce credit lines preemptively because you are worried that a mortgage lender will not approve you.  Having large lines demonstrates that you have managed credit responsibly.

That said, I have heard that some lenders might be uncomfortable with the amount of unsecured credit available to you, but you can always discuss the option of reducing that exposure with the lender at the time you are applying for the mortgage.  I believe I have read other threads suggesting that strategy. 

[BrianB_The_Loan_Professor]

It usually is not an issue -