How Do CCs (or New Accounts) Impact Mortgages?

YoungMoney06 · ‎04-28-2023

I've always heard that one should inhibit themselves from new account or credit cards at least, a minimum, up to 1 year before applying?

What is it about the new accounts or credit cards that hurt mortgage approval chances? Is it the AAOA, is it the "seeking credit" behavior? Does it make a difference if the credit does not add to DTI?

Ive been looking to apply for a mortgage, after talking to the mortgage lender I've been working with for a while, but cracked and applied for a credit card earlier today. Will that one new account result in a denial? Last card before that was back in September, October 2022.

My Wallet (Updated Sept 2023):
Store Cards:

Major Cards:

In Timeout:

mrcrisp023 · ‎04-29-2023

I'm in a similar boat. My scores are the highest they've ever been across the board and I would really like to apply for a specific card, but I plan on applying for a mortgage at the end of the year/early 2024. I've heard some say 6 months, I've heard some say 1 year. I'm curious to hear other's feedback. I was finally pre-approved for the card I've been wanting lol, but don't want to apply and mess up my mortgage timeline.

Capital One SavorOne: $3000 / Bank of America Unlimited Cash Rewards Visa Signature: $500 / Mission Lane: $2500 / Merrick: $2000 / CreditOne Amex: $850

Starting 09/2022 MyFico 08: EQ 648 / TU 659 / EX 644
Current MyFico 08: EQ 733 / TU 720 / EX 734

2024 EOY Goal: 750

URHomeInvestments · ‎05-03-2023

In my experience, it is the DTI (or debt to income ratio) that can scuttle a mortgage. Having too much debt prevents someone from making their payments. I had a tenant that was ready to buy our rental house from us, and they went out to buy a bunch of furniture. This added too much to their payments, and caused their FICO to drop. We had to wait until it rebounded so that they could complete the purchase.