topic Re: Too much available credit: How much is too risky for a mortgage lender? in Mortgage Loans

Too much available credit: How much is too risky for a mortgage lender?

Anonymous — Sat, 08 Sep 2007 18:38:16 GMT

I'm just beginning the house hunting process, and I keep reading things that suggest I might have "too much available credit" as a mortgage loan candidate. Some of the "recommendations" that came along with my credit reports also stated this.

When is a high revolving credit limit too much? What types of circumstances would make it not really matter?

The only accounts I don't really use all have really low limits, and I have a few reasons why I'd prefer to not reduce the limits on the higher limit cards. Not to mention, I think it doing anything would hurt my score to the point so I wouldn't qualify for the better loan rates.

As a note, my revolving credit is slightly more than I make in a year, but my current total utilization is around ~20%. I do have one card with a 0% interest balance that currently is nearly maxed out. My current score is ~720.

Message Edited by smlala on 09-08-2007 11:38 AM

Re: Too much available credit: How much is too risky for a mortgage lender?

Tuscani — Sun, 09 Sep 2007 00:40:23 GMT

Too much available credit will be interpreted by each creditor differently. IMO, it is complete BS.

Re: Too much available credit: How much is too risky for a mortgage lender?

Anonymous — Sun, 09 Sep 2007 04:29:50 GMT

I work with just about every bank you can think of and you will be fine. Keep in mind that people with 720 fico didnt get there by going crazy with there credit. Lenders will look at your payment histroy and take the min payment to add to your DTI.