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Stressed... need advice from a LO, really don't want to lose my house

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New Contributor

Stressed... need advice from a LO, really don't want to lose my house

Hello everyone, I really hope someone can give me some advice on this one...

 

I'm building a home. I am supposed to close on Nov 23rd. My credit report was pulled on September 15th and my mid-score was 715. I have gone through underwriting and they approved my loan with minor conditions. Just need to turn in paperwork verification.

 

Here comes the problem. American Express didn't like the way my AU was using the card. They did a financial review. I had no problem with turning in my bank statements because I knew I had everything clear. They finished the review, they didn't close my account (I didn't expect them to) but they took $10,000 away from my credit limit and told me to wait six months for them to give it back to me. Losing that $10,000 in my credit limit will hurt my credit score.

 

My question is: should I apply for another credit card, do a balance transfer and then close my Amex? Or will my LO cancel my approval if I applioval if I add another card to my credit profile?

 

Will they cancel my approval if they see that I have lost $10,000 in credit limit? Please help me figure this out. I am really stressed right now, but I don't want ot make the wrong move.


Starting Score: 689
Current Score: 689
Goal Score: 770


Take the myFICO Fitness Challenge

Amex BCE, Discover, FNBO AMEX, Citi Dividend Platinum Select Visa, Blue for Business
(In the garden until November 2013)
Next card Visa Signature - World Elite MC(Business)
Message 1 of 11
10 REPLIES 10
Community Leader
Super Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

Shouldn't be a problem.  I wouldn't sweat it, and I recommend you do not do anything with your credit.  The credit report & scores are good for at least 90 days, so you'll be well past your Nov. 23rd closing date before new scores would impact anything. 

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 11
Senior Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

Is your Amex card a revolving credit card or the charge card? The latter's spending limit is based on spending pattern/history. Please clarify which Amex card you are using.

Message 3 of 11
Super Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

what shane said. how old is the report they pulled?

ask the LO

 

Retired Lender
Message 4 of 11
New Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

Thanks for the response. So, are you saying they won't pull my report again since I'll be closing within the 90 day timeframe? Or are you saying, that even though they will pull the report again, it won't matter because they will still go off of my 715 score? 


Starting Score: 689
Current Score: 689
Goal Score: 770


Take the myFICO Fitness Challenge

Amex BCE, Discover, FNBO AMEX, Citi Dividend Platinum Select Visa, Blue for Business
(In the garden until November 2013)
Next card Visa Signature - World Elite MC(Business)
Message 5 of 11
New Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

It's a revolver. So, the loss of the $10,000 credit limit will be felt. Ouch. But that doesn't bother me, because I have enough credit and don't need to be spending once I'm in the house anyway... need to save. :-)... I just didn't want this to affect closing on my house.


Starting Score: 689
Current Score: 689
Goal Score: 770


Take the myFICO Fitness Challenge

Amex BCE, Discover, FNBO AMEX, Citi Dividend Platinum Select Visa, Blue for Business
(In the garden until November 2013)
Next card Visa Signature - World Elite MC(Business)
Message 6 of 11
New Contributor

Re: Stressed... need advice from a LO, really don't want to lose my house

They pulled the report on Sept. 15th and I close on Nov. 25th.


Starting Score: 689
Current Score: 689
Goal Score: 770


Take the myFICO Fitness Challenge

Amex BCE, Discover, FNBO AMEX, Citi Dividend Platinum Select Visa, Blue for Business
(In the garden until November 2013)
Next card Visa Signature - World Elite MC(Business)
Message 7 of 11
New Member

simular question

WE HAD OUR CREDIT PULLED A COUPLE WEEKS AGO, WE WERE CLOSE TO CLOSING ON THE HOUSE, EVERYTHING GOT APPROVED, WE ONLY HAD TO GET FLOOD INSURANCE, WELL WE FOUND OUT THE FLOOD INSURANCE WOULD BE A LOT! $2,500 A YEAR! SO WE DECIDED TO BACK OUT AND NOT BUY THE HOUSE AND DECIDED TO FIND A HOUSE NOT IN A FLOOD ZONE!, WE OUR NOW MAKING AN OFFER ON A 2ND HOUSE, NOW MY QUESTION IS WILL THE BANK GO OFF OF THE FIRST CREDIT PULL THEY DID FOR THE FIRST HOUSE OR WILL THEY GO FOR A SECOND CREDIT PULL AND USE A NEW ONE, IM SCARED CAUSE I KNOW OUR SCORES WILL BE LOWER DUE TO ALL THE CREDIT PULLS ON THE FIRST HOUSE, ANYONE HAVE ANY IDEA?

Message 8 of 11
New Contributor

Re: simular question

As long as it is within 60 or 90 days, I think they will use the original credit pull. I think that's the way it works. But since it is now a different house. I really couldn't be sure. You might want to ask them.


Starting Score: 689
Current Score: 689
Goal Score: 770


Take the myFICO Fitness Challenge

Amex BCE, Discover, FNBO AMEX, Citi Dividend Platinum Select Visa, Blue for Business
(In the garden until November 2013)
Next card Visa Signature - World Elite MC(Business)
Message 9 of 11
New Member

Re: Stressed... need advice from a LO, really don't want to lose my house

I hope they 60-90 day you mentioned is correct , cause when I look at the scores they are so much lower cause of the first house , "fingers crossed" our mortgage rep is out till Monday so I can't ask her till then
Message 10 of 11
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