New Account or No New Account Affect on Mortgage Approval

[Iusedtolurk]

I am contemplating applying for a Mortgage Loan from NFCU in about 7 or 8 months if the housing market gets a little better.

Mortgage scores currently:

Ex 770

Eq 755

Tr  745

AAoA 4 years

Utilization <5%

Accounts 11 revolvers  3 closed installments

Inq ZERO

*Right now I have a NFCU Checking Account and a Savings Account (I opened both earlier this year but really don't use them) I have 2 older checking accounts I use and another savings account.

I get several pre-approved mailers from NFCU and was wondering if it would be okay to go ahead and apply for one now to establish more of a relationship with NFCU. I would make NFCU CC one of my 3 daily drivers.

Would it be detrimental to do this or would the effect of a New Account at this time not be too damaging.

[pizzadude]

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@Iusedtolurk wrote:

I am contemplating applying for a Mortgage Loan from NFCU in about 7 or 8 months if the housing market gets a little better.

Mortgage scores currently:

Ex 770

Eq 755

Tr  745

AAoA 4 years

Utilization <5%

Accounts 11 revolvers  3 closed installments

Inq ZERO

*Right now I have a NFCU Checking Account and a Savings Account (I opened both earlier this year but really don't use them) I have 2 older checking accounts I use and another savings account.

I get several pre-approved mailers from NFCU and was wondering if it would be okay to go ahead and apply for one now to establish more of a relationship with NFCU. I would make NFCU CC one of my 3 daily drivers.

Would it be detrimental to do this or would the effect of a New Account at this time not be too damaging.

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I don't think that you'd need the card to get a mortgage approval, so I'm not sure what you'd gain.   Worst case, it might drop your score below their top tier for mortages and result in a higher interest rate.   If you haven't already, I'd call or chat with them to see what scores you'd need for their best rates. 

[cashorcharge]

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@pizzadude wrote:

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@Iusedtolurk wrote:

I am contemplating applying for a Mortgage Loan from NFCU in about 7 or 8 months if the housing market gets a little better.

Mortgage scores currently:

Ex 770

Eq 755

Tr  745

AAoA 4 years

Utilization <5%

Accounts 11 revolvers  3 closed installments

Inq ZERO

*Right now I have a NFCU Checking Account and a Savings Account (I opened both earlier this year but really don't use them) I have 2 older checking accounts I use and another savings account.

I get several pre-approved mailers from NFCU and was wondering if it would be okay to go ahead and apply for one now to establish more of a relationship with NFCU. I would make NFCU CC one of my 3 daily drivers.

Would it be detrimental to do this or would the effect of a New Account at this time not be too damaging.

---

I don't think that you'd need the card to get a mortgage approval, so I'm not sure what you'd gain.   Worst case, it might drop your score below their top tier for mortages and result in a higher interest rate.   If you haven't already, I'd call or chat with them to see what scores you'd need for their best rates. 

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Agreed 100% @pizzadude 

Adding another CC will not improve your chances of getting a mortgage with NFCU.  Low DTI and a good profile is really what you need...

[Revelate]

In general as soon as you decide to go for a mortgage, stop applying for anything that isn't strictly necessary unless you are batting 800+ anyway. 

Auto loan because your old car got wrapped around a telephone pole or similarly not going to work anymore and no car = no income => no mortgage, fine.

Another credit card with the very rare case (on this forum) of having a very thin or no file is never, ever necessary.

As others correctly stated it may well hurt your score even up to two years on some of the current mortgage models, this may well go to a flat 12 months after the GSEs do their score updates, but get tight both financially and credit wise in prep for the mortgage app.

[Iusedtolurk]

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@Revelate wrote:

In general as soon as you decide to go for a mortgage, stop applying for anything that isn't strictly necessary unless you are batting 800+ anyway. 

Auto loan because your old car got wrapped around a telephone pole or similarly not going to work anymore and no car = no income => no mortgage, fine.

Another credit card with the very rare case (on this forum) of having a very thin or no file is never, ever necessary.

As others correctly stated it may well hurt your score even up to two years on some of the current mortgage models, this may well go to a flat 12 months after the GSEs do their score updates, but get tight both financially and credit wise in prep for the mortgage app.

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@Revelate @cashorcharge @pizzadude  Well what it seems like I'm reading inbetween the lines is GO FOR IT so I'm going to put in a couple of Apps today.

Just Kidding Thanks for the advice I'm going to leave well enough alone since my scores are good and there is not a need for any credit apps.

It took a lot to not app for anything for over 2 years to get to Zero Inquiries and to get my scores to where they are now so I will be looking pretty good when I find a great deal for a house.

(I will be apping shortly after a mortgage approval for a couple better cards tho lol)

[Revelate]

Yeah I am likely to do at least a small spree after my own mortgage funds and keys in hand.

Credit market has changed a little and my financial needs and spending are changing too.