Question about Mortgages and Credit Cards

[Anonymous]

Hi Everyone and Happy New Year!

We were preapproved for a mortgage up to $320K this afternoon and I got my pre approval letter so that I can start making offers when we go out looking tomorrow with a realtor.  The letter said do not apply for any new credit and do not use your credit cards.  Do not use your credit cards?!? What?!? &%$@! Are they serious????

So as you all know, I applied for the Chase Freedom last week and was approved with recon.  They asked me to fax over some paperwork and I have confirmed that they have it in their system but I have to wait until Wednesday as the Verification dept is closed for the holiday.  I already took the hit for the inquiries so I really want this card!!!  We plan to close mid Feb so it might not even report before the time they do the final soft pull to close on the mortgage.  I qualified with a score of 703 Fico TU, that is the mid score.  Min requirement is 640.  I am no where near the edge.  So wondering how serious they are about this.  I mean, I won't apply for anything else after I FINISH the approval process for the Chase Freedom.   We are looking at several new homes that are being built from the ground up and for those we need new furniture!!! So I wanted to charge the new furniture on the Freedom AFTER closing and pay in full in March when I get my yearly bonus.

Am I in harm's way of possibly having a snag towards the end or do you think I am in the safe zone as far as continuing to process my Freedom?  Also, I don't see any harm in using my credit cards as I PIF before the statement cuts so the report will continue to show a zero balance, right?

So excited guys!  Need advice...I'm not screwing this up! 

Thanks in advance all.

[bigman023]

We closed last Dec.  I would have never apped for that Freedom card during the mortgage process.  ALthough I don't think it will be a deal breaker. It might  turn out to be one more hurdle you have to jump, to get to closing.   If they pull your credit before closing, the INQ and the new account will likely have negative effects on your score. They may want a letter of explanation about the new account. Also,you may have bumped your score down, to where you don't get the best rate. I don't think this will stop you from closing.  But you may have created a little more paper work for yourself.

Good luck!

[Anonymous]

They pulled the reports today and the inquiries were already on there. They saw them but didn't say anything. I saw them too. So no more inquiries. I just want my card! I have to finish up final approval for the card on Wed. We originally weren't going to app until Jan29th but we got into issues with our landlady as we don't want to purchase her home anymore so now we need to move on closing sooner than we thought. I should have waited...not arguing that but now that what is done is done, I want my Freedom card. I only have two CCs currently.

[Anonymous]

It sounds like I made a circus out of this by apping for the Chase Freedom card. Hoops and hurdles and explanations.