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Posts: 5
Registered: ‎08-17-2012
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New cards affect mortgage application

As a newbie, I have a question for all you savvy MyFico-ers. Last month I applied for some credit cards for DH and myself that I've had my eye on. I was thinking we would not be looking for a house/mortgage for AT LEAST 1-2 years. However, as is usually the case with my plans, things have changed and I am now anticipating to begin the mortgage application process in around 6 months.

Here are the details: before apping our scores were 740-760. Both had AAoA of 2-3 years (multiple TLs and student loans reporting so AAoA will decrease probably 3-4 months). No lates/ baddies of any kind on either report. I will have 1 new TL reporting on my account as of last month and he will have 2.

So, have I ruined us for a potential mortgage hunt this Spring??
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Posts: 619
Registered: ‎09-26-2011
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Re: New cards affect mortgage application

I think you will be fine.  I was told not to open anything new at all once I started the process and had been about 6 months out from my last apps.  I did do a money shuffling installment loan in the middle of my application, but it was to improve my DTI and it was OK'd by the LO and UW with a letter of ex. 

 

I cannot WAIT to close on my house so I can app for Navy and Lowes!!!

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

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Posts: 7,225
Registered: ‎09-16-2011
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Re: New cards affect mortgage application


BhamRN wrote:
As a newbie, I have a question for all you savvy MyFico-ers. Last month I applied for some credit cards for DH and myself that I've had my eye on. I was thinking we would not be looking for a house/mortgage for AT LEAST 1-2 years. However, as is usually the case with my plans, things have changed and I am now anticipating to begin the mortgage application process in around 6 months.

Here are the details: before apping our scores were 740-760. Both had AAoA of 2-3 years (multiple TLs and student loans reporting so AAoA will decrease probably 3-4 months). No lates/ baddies of any kind on either report. I will have 1 new TL reporting on my account as of last month and he will have 2.

So, have I ruined us for a potential mortgage hunt this Spring??

 

No way you will be fine. The effect of the new accounts will deminish some within the next 5 months. I think you are safe to apply in Feb or march. You are doing great! You should consider both a conventional mortgage and an Fha mortgage. There are pros and cons to each. I like the conventional because it costs less in the wrong run but an Fha can be much easier to get because of less down payment and cash reserve requirements. I think its a good idea to study both programs. Basically; the amount of cash you have in savings will determine which program is right for you.

Starting Score: 08/29/2011 TU 671 EQ 674
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Registered: ‎08-17-2012
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Re: New cards affect mortgage application

Ok, great. Thanks so much for the replies! After we decided we might need to move earlier than expected I was so upset about having applied for the new credit. It's always nice to know how the situation looks from the outside :smileyhappy:

I'm thinking we'll probably go for the FHA loan because the smaller down payment would be better right now. But we're definitely weighing the options of FHA vs. Conventional.
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Posts: 7,225
Registered: ‎09-16-2011
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Re: New cards affect mortgage application


BhamRN wrote:
Ok, great. Thanks so much for the replies! After we decided we might need to move earlier than expected I was so upset about having applied for the new credit. It's always nice to know how the situation looks from the outside :smileyhappy:

I'm thinking we'll probably go for the FHA loan because the smaller down payment would be better right now. But we're definitely weighing the options of FHA vs. Conventional.

Best of Luck to you guys!!


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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Posts: 13,571
Registered: ‎04-15-2011
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Re: New cards affect mortgage application

6 months is generally the rule when apping before a mortgage.  With that said it wouldn't ruin your chances for anything.  You may just have to explain them.



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