Will My FICO Scores Drop With A New Mortgage

[fused]

Hi Everyone:

I have good FICO Scores: EQ 783, EX 755, TU 804

I have a few "satisfactorily paid" installment and car loans reporting to all three credit b's and a spotless credit card history.  I have no mortgage tradelines.  I am tired of paying someone else's mortgage every month.  My wife and I want to purchase land priced btw 50-75K.  Can anyone tell me what will happen to my FICO scores after this new mortgage tradeline reports to the credit b's.  Any feedback is appreciated.

[Anonymous]

I have heard FICO scores go up with a new mortgage, not sure if it is true.  I am also shopping for a mortgage (my first) so if I buy before you I will let you know!

[Tuscani]

It really depends on your overall report.. you may notice a slight drop in the short term, but your scores should bounce right back.

[Anonymous]

One main purpose of credit scoring (whether the CRAs acknowledge it or not) is to separate the "haves" from the "have-nots." Owning a home sets you apart as a "have," and therefore the FICO scoring system is designed so that mortgages will almost always increase your credit score.

[fused]

Thanks to everyone!  It is good to know I should not get hammered early for a mortgage. 

[Anonymous]

Hammered, no. FICO is a skittish beast, however, and so you may--may!--take a small ding in the short run. In the long run though, a faithfully paid mortgage is almost certainly going to improve your score. I'd give you ten to one that if you get a mortgage today, by the end of 2008 your FICO is higher than it would have been without the mortgage.