I'm in the process of getting ready to apply for an FHA mortgage / Traditional (i live in a HCOL area so FHA might be risky if i want to close fast on a house so leaving both options open) and I have a question about credit card limits. I currently have a decent amount of available credit across several cards, but I'm wondering if having a high total credit limit could potentially hurt my application.
I've heard conflicting information about whether lenders look at overall available credit as a potential risk factor, even if my utilization is low and my payment history is perfect.
Does anyone have experience with this or any insight into how FHA lenders or Traditional Mortgage with the big banks might view high credit card limits?
Does a high total credit limit impact your debt-to-income ratio (DTI) calculation, even if you're not using the credit? My monthly CC spend is about 3k and i always use it "like a debit card" and pay it off. Totak Credit Limit across all cards is around 250k on 20 cards.
Has anyone successfully gotten an FHA/Trad mortgage with a high total credit limit or will they ask me to close some accounts or ask for the bank to lower the limits? The concern here is they might also want to wait months for the credit reports to update.
Would it be advisable to lower my credit limits on some cards before applying?
Any advice or experiences where a high total credit card limit affected your mortage process would be appreciated.
