Too much credit for a mortgage?

[pdxuser]

I'm pretty sure a mortgage officer would add up my total credit limits on my cards and see how much credit I have available compared to my income. There's probably even a handy acronym for this ratio that I'm not aware of. What's a good range for this ratio to be in? I don't want my credit limits to be so low that I'm deemed not to have enough experience handling large credit amounts responsibly, but I also don't want them to be so high that it looks like I could just run up all my cards on furniture tomorrow and have no money to pay the mortgage.

[DallasLoanGuy]

The amount of your credit lines are ZERO part of the approval process.

[pdxuser]

Ok, wow, I must have been watching Suze Orman drunk one night or something. I could have sworn I had heard something from somewhere about how if you have so much credit that you could easily go bankrupt, that that could hurt your ability to get a new loan. And I know I've read in the CC forum that sometimes CCC's will see that the limits on your other cards are low and approve you for a lower limit than they otherwise would have, the reason being that you haven't demonstrated that you can handle larger CL's.

Message Edited by pdxuser on 10-15-2008 08:20 PM

[DallasLoanGuy]

Didn't you know?

Suze is a fish!!!

What kind of fish? Well, a Bass of course!!!

And a very Dum Bass at that!!!!!! 

[pdxuser]

Well, I don't think I've watched her in at least a year, I was just making a little jokey-joke.

Although myFICO keeps trying to get me to buy Suze Orman financial kits.

[DallasLoanGuy]

i was making a little jokey joke too.... 

she spouts a lot of common sense. but she has been wrong plenty of times.

a lot of open credit would make a traditional banker look twice if you were asking for a line of credit, but mortgages dont care.

[Anonymous]

I had a friens who was told to close all his account before applying for a mortgage...because of his available credit...he has his house now...but I keep telling him he doesn't have to close his credit cards...

[ShanetheMortgageMan]

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@DallasLoanGuy wrote:

Didn't you know?

Suze is a fish!!!

What kind of fish? Well, a Bass of course!!!

And a very Dum Bass at that!!!!!! 

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LMAO!  If I was drinking milk it would've come out my nose after reading this.