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Applied for credit after mortgage preapproval

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Applied for credit after mortgage preapproval

OK experts...  Did DW and I do a dumb thing here?  We applied for and got a preapproval for a $280,000 mortgage fixed for 30 years at 6.375.  Wanting to jump on the flat screen bandwagon my DW applied for (at my insistence) and received a $3000 LOC with Circuit City.  Card just came 2day, however we have decided not to purchase the flat screen until we get our home. (Jan-Feb.)  Will this new LOC affect our mortgage preapproval? 


Message Edited by Barracuda on 11-30-2007 03:15 PM
Message 1 of 7
6 REPLIES 6
Community Leader
Super Contributor

Re: Applied for credit after mortgage preapproval

Oh my gosh what did you do??!?   Just kidding... just make sure they aren't going to re-check credit and use your "after LOC" credit scores, or that could affect things.  Don't use the LOC or you'll have to disclose the payment to your LO, and will need to be re-run for approval with that payment included.
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 2 of 7
Valued Contributor

Re: Applied for credit after mortgage preapproval

'cuda be glad you are not my client - I would be reading you the riot act right about now.... PLEASE don't use it and PRAY they don't re-run your repors for any reason (like they lost a page).
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747
Message 3 of 7
Community Leader
Super Contributor

Re: Applied for credit after mortgage preapproval



Lady_Scarlet wrote:
'cuda be glad you are not my client - I would be reading you the riot act right about now.... PLEASE don't use it and PRAY they don't re-run your repors for any reason (like they lost a page).



Yeah, I definitely warn clients not to take on new credit after approval... however even if a lender lost the credit report completely (not many places actually print out a credit report these days) they should be able to go into their credit vendors system and print it again.
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 4 of 7
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Valued Member

Re: Applied for credit after mortgage preapproval

You guys have me nervous now. Smiley Indifferent  Should I call my LO, tell her what I did, and beg for mercy?  After all, honesty is the best policy, right??
Message 5 of 7
Community Leader
Super Contributor

Re: Applied for credit after mortgage preapproval

I would if I were you... the LO is on your side, they will make sure it has the least amount of impact possible... just don't use it or your debt ratio will have to be re-calculated, not sure if it can absorb any more payment and still qualify, ya know?
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 6 of 7
Established Contributor

Re: Applied for credit after mortgage preapproval

Cuda I have been wondering the same thing--crazy us we have been waiting to close on our refinance however ours is FHA so it may not hurt us--I am hoping they dont repull either just one more week and I will know for sure--fingers crossed---since I got approved for ours I have gotten a Walmart card adn I already had Wamu Visa 600 limit and got another Wamu M/c 2000 limit and was preapproved for a furniture account (had a deal on some dressers day after thanksgiving --needed for my daughter) however the other WAMU I activated and have not and will not use---Walmart only used 45 dollars and the furniture account was minimal too took the offer since it was 0 interest for 90 or 120 days--anyways---what i did was got an CLI increase on one card--paid another in full and I plan to pay several hundred on my other 2 so UTI is low and just pray the scores are balanced out from the inquires and with the limits and new open lines--one is already reporting--hope the others too for DEC since all were done in NOV--good luck to you and same to myself!! Smiley Happy
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Message 7 of 7
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