topic Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan? in Credit Cards

ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

Taurus22 — Tue, 11 Feb 2020 00:26:19 GMT

So I'm hoping this doesn't get moved to the mortgage forum because it's primarily a CC question, that affects both.

I'm buying my first home around July-Aug so I've been trying to resist the CC bug. But I'm dying to have the ABoC UnionStrong MC and since it pulls EX2 I'm wondering a couple of things:

1) Will app'ing for this card @ end of March have a negative impact on my mortgage loan in July-Aug?

2) If I resist and wait until after my mortgage loan goes through, will that negatively affect my chances of being approved for the ABoC ?

Current INQ: EX (2) TU (2) EQ (2) - Both EQ's fall off in July this year

Current FICO: 711 Avg - Due to 4-card app spree in March 2019 (and 26% UT currently) (4/24 until March 2021)

*(By Mortgage time my UT will be 0% and I should be back to 760+)*

AAoA: 2yr 7mth AoOA: 7 yrs

Just don't want to screw up my mortgage, but also got that itch for that ABoC. Just wondering if I should be patient and wait?

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

K-in-Boston — Tue, 11 Feb 2020 00:35:24 GMT

No matter which version of FICO score is looked at it'll still be the same pull. You haven't had any inquiries in the past year. I would not risk adding recent credit seeking and a new account to your profile until you have keys in hand.

If you do not have a current mortgage it's likely that your profile will be stronger after the mortgage is reporting. But regardless, if you app for the card the day you get the keys your profile is essentially the same as today minus the mortgage inquiry or inquiries since the mortgage will take a while to report.

Also make sure your utilization isn't truly 0% when you have your mortgage done as it'll negatively affect your mortgage scores.

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

Taurus22 — Tue, 11 Feb 2020 00:48:24 GMT

@K-in-Boston

Right....I meant to say my UT will be AZEO. Is there a prime UT% to be at for the mortgage? I know it obviously needs to be under 9% but is there a sweet spot?

Aside from that, thanks for the insight. You basically told me what I already kinda knew, but needed to hear the words. No new credit until keys in hand.......got it.

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

K-in-Boston — Tue, 11 Feb 2020 01:51:38 GMT

No problem at all! I am not an expert on scoring, especially the older models used for mortgage lending, but I would shoot for under 4.9% but with at least one card reporting enough not to round down to 0%.

For that, you may actually want to start a new thread about ideal AZEO balance for mortgage pulls over in Understanding FICO Scoring.

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

Anonymous — Sun, 16 Feb 2020 08:47:59 GMT

I remember a card from that bank and a point did not equal a penny, so if you’re going for the cashback card, read the fine print.

K is right on point, as soon as the mortgage goes through you can hit up there and the other card you want before your situation changes. And guess what?! the other one uses EX2 as well!!!

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

tcbofade — Sun, 16 Feb 2020 18:45:16 GMT

...as you've already stated... be patient. Don't apply for anything until the keys are in your hand.

Mortgage is more important.

Once you have the keys in your hand, apply for anything you'd like.

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

Anonymous — Mon, 17 Feb 2020 01:51:18 GMT

Yeah the buffer for inquiries for the mortgage is buffered 30 days anyway.

Re: ABoC MC - EX2 Pull - How does it affect Mortgage Loan?

Revelate — Mon, 17 Feb 2020 05:54:48 GMT

Wasn't mentioned but new accounts winds up being the #1 reason code on the mortgage trifeca of scores for clean scorecards.

Totally bad mojo opening anything up for all that yours truly opened up a Hilton card and then not a week later decided "What, neither of my employers care? Moving to Texas!"

Just finished writing the LOE for that one even if the UW didn't ask (Amex hasn't reported yet); the UW is probably going to laugh at the drunken fiesta that are my finances right now, good thing it's a long close and I have time to answer questions in detail.