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What should I not do?

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Anonymous
Not applicable

What should I not do?

So I am super excited because I have been saving to buy a condo and I am about 4 months away from applying which I know I will be approved. But before getting a mortgage what should you not do? I am in the market for a car but I don't know if I should go for that before getting the mortgage? I also wanted to app for an amex for groceries in september, should I hold off pr go for it? I know many say to garden and just chill out until you get your mortgage but many disagree, so I just wanted a little advice. Thanks in advance
Message 1 of 6
5 REPLIES 5
RobertEG
Legendary Contributor

Re: What should I not do?

Standard advice is not to apply for new credit in the year leading up to a mortgage application.

Howver, if you have a lendor in mind for the mortgage and a pressing need for other new credit, you might give them a call and ask whether an intended application will negatively affect their underwriting process.

 

In general, I would forgo any new apps unless or until you get word from your prospective mortgage lendor that it will not affect your app with them.

Message 2 of 6
Anonymous
Not applicable

Re: What should I not do?


@RobertEG wrote:

Standard advice is not to apply for new credit in the year leading up to a mortgage application.

Howver, if you have a lendor in mind for the mortgage and a pressing need for other new credit, you might give them a call and ask whether an intended application will negatively affect their underwriting process.

 

In general, I would forgo any new apps unless or until you get word from your prospective mortgage lendor that it will not affect your app with them.


Thank you, I figured I should just chill out 

Message 3 of 6
RonM21
Valued Contributor

Re: What should I not do?

It's mainly because when you apply for new credit or loans, it's possible that you can suffer a decrease in score, as well as be considered to appear more of a risk because you are looking for credit. You're doing the right thing laying low until then.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 4 of 6
Anonymous
Not applicable

Re: What should I not do?

Your right, thank you so much
Message 5 of 6
p-
Valued Contributor

Re: What should I not do?

On top of what was already said, you are limited in your mortgage amount by percentage of monthly income for all payments.  If you sign on for a big car loan, the payment detracts from the total mortgage payment you would be approved for.  

Message 6 of 6
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