Post Mortgage Refi, how long should I wait to make application for a CC?

[Anonymous]

I'm chomping at the bit to make application for Chase Unlimited, but I am just finishing up a mortgage refi.

How long after the closing should I wait to apply? Do I need to allow a full month to go through? Or does it really matter?

[Anonymous]

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@Anonymous wrote:

I'm chomping at the bit to make application for Chase Unlimited, but I am just finishing up a mortgage refi.

How long after the closing should I wait to apply? Do I need to allow a full month to go through? Or does it really matter?

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Wait until the mortgage funds... which happens the fourth business day AFTER CLOSING... (three business day recision period, funds following day).

But literally you could do it immediately afterward if you like.  Once it funds, you're 100% in the clear.  

One reason you *could* wait is if you think the mortgage will show up well on your report, or if you want to take some of the refi money and pay down another loan/card/etc.  Seriously though, if you think your score is at a "high" right now for the mortgage process, apply after funding.

[Harvey26]

@Anonymous  I would ask your LO. I have a friend who is refinancing her home and she wanted a freedom card. Shot her LO an email and she said she is good to apply credit report is good for 120 days. If you really want to be careful than you can do it after you close but if your LO gives you the clear than you could apply now.

[Anonymous]

@Harvey26 

So, I took your advice and reached out to the LO. There is one final step that the title company is waiting for, and then it will be submitted for final review. When asked about applying for a new CC, she said that obtaining any new liabilties could effect the final decision, but (as you pointed out) the report they pulled is good for 120 days and it won't expire until the end of January, however she mentioned she should have no cause to pull another one.

So, I am biting my knuckle debating if I should apply, or wait till the final review is over. lol

[Anonymous]

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@Anonymous wrote:

@Harvey26 

So, I took your advice and reached out to the LO. There is one final step that the title company is waiting for, and then it will be submitted for final review. When asked about applying for a new CC, she said that obtaining any new liabilties could effect the final decision, but (as you pointed out) the report they pulled is good for 120 days and it won't expire until the end of January, however she mentioned she should have no cause to pull another one.

So, I am biting my knuckle debating if I should apply, or wait till the final review is over. lol

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Listen- mortgage underwriters are twitchy.... and they WILL do a soft pull prior to close, after it is submitted for final. They have the right to do another one at any time. 

Make this process SUPER EASY and less worrisome on yourself... WAIT UNTIL THE REFI FUNDS.  Fourth biz day after closing. Make your life easier. Seriously.

[K-in-Boston]

Absolutely wait until the mortgage refi is completed.  Delays can and do happen, and any changes in the meantime can certainly affect the outcome - particularly when discussing mortgage scores.  After it's done, app away.

[Anonymous]

Well, before I saw the two follow up replies I pulled the lever and applied with an approval of 15k limit.

I won't charge anything on it just yet. Right now I am sitting at 2% utilization, if not less because of the new card. 

Hopefully it won't cause a bump in the road.

[Anonymous]

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@Anonymous wrote:

Well, before I saw the two follow up replies I pulled the lever and applied with an approval of 15k limit.

I won't charge anything on it just yet. Right now I am sitting at 2% utilization, if not less because of the new card. 

Hopefully it won't cause a bump in the road.

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(sigh) you'd been told that already before those posts, so you can't say you weren't told.  Hopefully it won't cause any heartburn for the UW team.  Be prepared to explain the new inquiry.  They will want to know if new credit was established.  Obviously the answer is YES.    SHAME on your mortgage broker for not driving home the "DO NOT MAKE CHANGES TO YOUR CREDIT UNTIL FUNDING" rule.  Your fault if it is a hiccup, but still, shame on him for not reinforcing...  Based on other posts, your F8 scores are near 800, so hopefully your 4/5/2 scores are as well.  Hopefully your debt-to-income ratio isn't borderline.

Good luck.

[Anonymous]

" Hopefully your debt-to-income ratio isn't borderline."

Its not even close to borderline.