UPDATE: Should I....

[Anonymous]

Even speaking to a Broker most likely won't help. The requirement comes from the underwriter of a specific lending company and they are allowed to use their own discretion when reviewing an application. Plus requirements vary by lender and if you decide not to go with a particular lender, you may run into a different requirement in regards to this. Brokers work with many lenders and they all have different requirements. but the rule of thumb is DO NOT close good accounts just before applying for a mortgage. the only time you should is when it is a direct request from the underwriter to do so to reduce DTI. There are a ton of mortgage brokers on the mortgage forum and I was about to say that this post is better suited there. But I am providing the advice that they would provide there as I have spent countless hours on the mortgage board reading posts and responding.

All mortgage lenders require a min amount of open trade lines. If you don't have them, you will have to submit non-traditional lines of credit like rent and utility bills and not all lenders accept them. If they do, your file would have to be manually underwritten and that takes longer to go through and is more time consuming and everything is riding on a human approval versus simply verifying the approval results through Desktop Underwriting. These are terms that are frequently used in the mortgage forum as I provide a lot of help to folks there as well. Non revolvers count towards this requirement so student loans definitely count.

DO NOT CLOSE THEM!!!

Even with the score drop from the new account, you still qualify for FHA but your score is borderline for conventional.

[LisaJ]

I dropped OB and HSBC like a hornet's next when they refused to consider dropping my fee. With their meager CLs, (that they charge for!!!) it wasn't worth it. At that point, like you, I had much better options. I didn't experience a point drop, but as with anything, YMMV.

[LisaJ]

I didn't realize how close you are to mortgage app--definitely wait until AFTER you get approved!!! Not only due to credit score, but DTI...it's a fine line and a slippery slope, and NOT worth it to drop them right now.

[shorrttyycm1]

Thanks everyone for the great info...very much appreciated!!!!

I guess I'm gnna have to keep them around until closing...ah but the day after..... ;-)

[Anonymous]

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@shorrttyycm1 wrote:
Thanks everyone for the great info...very much appreciated!!!!

I guess I'm gnna have to keep them around until closing...ah but the day after..... ;-)

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Yep!  WHen is the annual fee due?  Hope you can close before then!

[shorrttyycm1]

Ob in October and i pay monthly for merrick