topic Re: Purchased First Home in General Credit Topics

Purchased First Home

Anonymous — Fri, 03 Oct 2008 03:51:27 GMT

Hello,

I just closed on my first house two weeks ago and I'm wondering if buying a house increases your credit sore. Also, I have noticed several unauthorized inquiries on my credit reports from mortgage companies that I never sought lending. How can I get these removed? TransUnion is giving me a hard time but Equifax has been great. I want to get a home equity line of credit and I'm afraid too many inquiries will prevent me from doing this.

Thanks

Megara

TU=669 EX=706 EQ=687

Re: Purchased First Home

Anonymous — Fri, 03 Oct 2008 04:11:33 GMT

You can't get the inquiries removed...nor do they matter. In seeking lending a person authorized to run your credit will try other avenues and they are all legal once you sign the document authorizing them to pull credit. Most importantly those pulled within 14 days (or on newer scoring models) 30 days count as 1.

At first your score will take a small hit...but as it ages and you prove your ability to pay it the points will regain quickly and go beyond where you started.

I would think the chances of getting a HELOC on a 2 week old new home purchase would be slim to none in this current market...

Congrats on the new house! I am very envious!!!...And welcome to the forums, you will find a lot of great resources here. Also you would get more responses and some from real loan officers to respond if this were posted on the Mortgage Forums.

If seen, Kind and Pleasant Mod's please transfer this over there for the professionals to see.

Message Edited by 1111mel on 10-02-2008 11:11 PM

Re: Purchased First Home

Lel — Fri, 03 Oct 2008 23:38:45 GMT

Those inquiries are soft pulls from other lenders who want to poach your loan. Your deed of trust is recorded at the county courthouse and is public record, and these lenders troll these rolls to find people who recently took out mortgages. They check your credit and then send you a letter offering a drastically lower interest rate, though if you actually contact these lenders you'll find out that the letter only describes an unavailable teaser rate and reality is something much different. These offers to refinance are essentially the same as those unsolicited credit card offers.

Bottom line is that these soft pulls don't affect your credit score, and you shouldn't waste your time trying to remove them.

Our credit scores went up shortly after we got our first mortgage. We got a home equity loan about 2 months afterwards without any problem. But that was in early 2006; things are much different now.

Whether you can get a HELOC is going to depend in large part on the total LTV. If you are pushing 90% already, then a HELOC may not be in your future.