What is the rule of thumb for new credit before applying for a mortgage?

[getting2work]

A person should not apply for new credit right before buying a home right? My husband and I are each applying for a couple cards in order to decrease utilization and plus hubby had no credit cards before this week during our rebulding.

We are looking to buy in March next year. Is there a rule of thumb as far as length of time an LO would like to see from apping for any credit until we app for a mortgage? 

[Anonymous]

The longer you go with out getting new cards the better because although it may decrease your utilization it will also decrease the avg. age of your accounts which is also a factor in your credit score.

[Anonymous]

Getting new cards to decrease utilization can be dangerous, be careful with that

However, if he doesn't have any cards it's a good idea to have at least one. Just make sure you'll be approved for the card. A denial could hurt. The longer the better is good advice so if you need them, you'd want to do it now.

[getting2work]

OK thanks for your help. Hubby got approved for Orchard and I had two cc's but no store cards. I got a Jared with a 2k credit line, that I will use very rarely and pif. I am hoping this will help as my credit cards were only $1k tradeline before. Now we will app no more until after house. I figured we should do this now to help build our scores to buy the house in about 8 mos.

[Anonymous]

as a warning, underwrites want to see 12 months history prior to purchase before they really consider a card/account.  Make sure your husbad has some other accounts that can show a 12 months clean payment history such as utilities in his name, etc if he has had no active positive tradelines.

[marty56]

Just got approved for a 5 year fixed loan at 4.0 %.  They payment is almost double of what my current mortgage is and IMHO the only reason I was able to get this was that my only new loan (auto loan) just turned 1 year and no INQs less than a year old.  NO CC debt as well so dont use your CC cards either.

Also it would be a hard sell to apply for new credit after getting a mortgage loan.

Bottom line, dont app if you want a mortgage and the goal is to have no account less than a year old.

[DallasLoanGuy]

Every file is different as far as recent accounts.

I have seen it not matter too much. But the advice above about average age of accounts is important

[getting2work]

OK, advice taken!!! Thank you so much for all of your information.