How long before mtg app for inquiry

[DGOATS1]

Wife had a light file
1 retail card
1 student loan
1 auto loan

Mtg score 671

We plan to apply for mtg in 1 year.

Will having 2 inquiries now for two more revolvers be ok or do you need a solid 1 year no inquiry

Some say do it and after 6 months inquiry will be offset from value of having the magic 3. I agree but wanted to check this forum as well before pulling the trigger

[Anonymous]

With what I know now, I wouldn't recommend it.   She'll get dinged not only for the hard inquiries, but lowering the average age of accounts once those cards report. 

I have a similar situation, I had only one card.   I applied for two more.  I took a 7 and a 12 point hit for the hard inquiries, then lost another 18 points when one new Chase card started reporting.  The AMEX card hasn't reported yet, but I cringe at what it'll do to my scores.  If AMEX drops it another 18 points, I'll have lost 55 points total from opening two cards.   Now, it's not permanent - but my guess is it will take longer than 6 months to get back to where I was.     

I get the feeling from reading here (and my own experience) that thin files are more sensitive and volatile than thicker files.  I wouldn't do anything to rock the boat with a thin file.  I would just manage the one credit card carefully, letting only a very small amount cut a statement (but not a zero balance) for the next year.   

[AZEsq]

It depends. Are you trying to go conventional? Is her AAoM greater than 10 years? You'd need to speak with a lender about these because getting a TRUE credit card (and not running a balance) would significantly boost her scores in the long run. Considering as you're waiting a year to app anyway, if she can qualify for a decent limit card, now would be the time to do so. However, you have to consider her age of money, her history with cards, and the program you're apping for. If you're going FHA, it's probably not going to matter long term. I'd consult a lender/banker if you're that far in the process yet. If not, and she has a history of being financially responsible and has, otherwise good credit, it will not hurt her to open a card or two at 12 months from application... the inquiries will dip the scores, but if she has little to no credit history, and manages it well (see AZEO, which isn't for everyone but is perfect for those seeking mortgages) it will help her file both be more rounded and raise her scores. Mortgage scores are different than FICOs though. She doesn't "need" the cards to get the mortgage. Make sure this won't put you in a worse situation than before. If there's a reason she has no cards, don't get any.

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@DGOATS1 wrote:
Wife had a light file
1 retail card
1 student loan
1 auto loan

Mtg score 671

We plan to apply for mtg in 1 year.

Will having 2 inquiries now for two more revolvers be ok or do you need a solid 1 year no inquiry

Some say do it and after 6 months inquiry will be offset from value of having the magic 3. I agree but wanted to check this forum as well before pulling the trigger

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[DGOATS1]

Thanks

I’ll keep everyone posted on results

[DGOATS1]

I’ll keep you posted. She lost 4 pts on the apps and got a discover it card SL 6700 and a store card. I got an Amex with SL 11,600 and lost 1 point in the inquiry. Fingers crossed for no decrease when they post.

[DGOATS1]

Just updating this prior thread

Scores have done well. We each lost 4 points middle mtg score with inquiry but the fico8 put us both in the 700 club. At the mortgage app the new cards will be 1 year old so I am hopeful for improvement. I also need to wait for the next 3b update to get the newest Mortgage scores with everything reporting. Wife is at azeo and I will be there in sept.

Me: 704/705/707. Mm 654
Wife 715/692/703. Mm 673

[DGOATS1]

Realized I never updated this post. Doing real well. Hoping for a increase in the mtg scores when azeo takes effect and we hit 1 year mark since apps in April. Then we apply. Goal is lowest MM in the 690s but if I get 700 I’ll be ecstatic. So long as we are now above 680 for our conventional we should be fine. Spoke with my LO from prior mortgage and running numbers we are in super shape so long as we are above 680

Me: 725/719/719. MM 684
Wife 722/700/714. MM 688