Should I expect a drop in my scores now that I've closed?

[Anonymous]

 I've read some conflicting things about what happens to credit scores after purchasing a home. Will my scores drop short term or worse for a year or two? If so, how long before they rebound and how much can they drop? I read something about "credit shock,'' and that scores drop once you actually buy a home. Yet, from everything else Ive read, a mortgage is the best way to increase your scores. I'm really confused on this subject and any input would be greatly appreciated. I closed Jan 30th and so far nothing has hit any of my scores other than the inquiry for the home loan. That brought my score down by just 1 point. My first payment was due March 1st and hasn't shown up on any of my reports as of yet. Since I was concerned my score might drop drastically I may have done a stupid thing. I applied for a was approved for a Lowes card. That's not hit my scores yet either. I don't plan on using it immediately..I only got it in case of an emergency. I've not bought anything new and don't plan on buying anything new..I guess I just wanted the security of knowing I'd have the Lowes card if there was an emergency.  I'm going to garden for the next year at least and try to save every penny I can to avoid using any credit cards other than the one I use to pay my utilities, buy groceries and gas for the rewards and I pay that off each and every month in full. I have also read that not using my cards and keeping zero balances on them is bad for my score. Is that true? I want to keep my scores going up and my goal is someday to be in the 740+ range. I felt confident I would be there by this time next yea as long as I made my housepayments on time but after reading about the "credit shock," I'm worried, especially considering I got the Lowes card.

[203bravo]

You'll be fine --- it should take about 3 months for the mortgage to report.  You will see a slight decrease in points due to the new account and the effect that it has on you aaoa, but those points will return as you make the 1st few payments.

[MovingForward_2012]

I also went out and obtained new credit about a week after closing for home entertainment. My score has already dropped from 703 to 684, but the factors are inquiries for the mortgage, car lease, and two credit cards, the associated new accounts and utilization. Usually, it takes 3-6 months for the mortgage to start reporting. So depending on how much history is reported with the mortgage, your score may go up or down. But a mortgage is indeed the most prestigious line of credit because lenders recognize that it requires more skill and discipline to obtain.

So over time as your mortgage history builds, your score will rebound and most likely increase above your preapproval score in a year or two, depending on the state that your accounts are in as a whole.

The only credit shock I am aware of is related to payment shock: new mortgage/old payment, which doesn't affect your score but your ability to qualify for a mortgage payment greater than 125% of the old payment with certain lenders but you and I are pass that stage, so I don't think you have anything to worry about.