WHY NO NEW CREDIT BEFORE HOUSE BUYING?

Takunda1 · ‎05-02-2008

Is it mainly becasue the inq or new account caould lower your score? If this is the only reason I would gruess that people with scores over 760 wouldn't worry much about this. Educate me please.

ShanetheMortgageMan · ‎05-02-2008

Yeah because having brand new trade lines typically lower your score a little bit plus automated underwriting systems tend to not like a lot of new trade lines... so if you have good scores and not many new trade lines then it's probably OK for you to open one (or two).

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Anonymous · ‎05-02-2008

INQ can lower score, new account will lower avg age (lowering score) , you can also get put in the "Applying for credit" bucket (will raise or lower your score)

Mortgage qualifications also include DTI (Debt to income), an added auto loan (even if you think you can afford both) the lender may see the addtional debt load is too much.

So- IMO You have the income, scores, employment history, down payment and are ready to go- WHY break it?

Takunda1 wrote:

Is it mainly becasue the inq or new account caould lower your score? If this is the only reason I would gruess that people with scores over 760 wouldn't worry much about this. Educate me please.