Mortgage question

[HomeBrewerDude]

you could call up a current card and have them reduce your creditline by 5k or so. but seriously, why not just wait.

 

[Codewiz]

Originally posted by: HomeBrewerDude
but you are acquiring more potential debt

Correct That is why I asked in general

 

[NL5]

Originally posted by: Codewiz
" Your loan officer told you not to acquire any more debt prior to closing for a reaso"

Just FYI, getting credit is not the same as acquiring debt.

It can be WORSE.

A LOT WORSE.

Like said above, potential debt is bad as well.

 

[Vic]

Originally posted by: Codewiz
" Your loan officer told you not to acquire any more debt prior to closing for a reaso"

Just FYI, getting credit is not the same as acquiring debt.

But an inquiry will show on your credit report, which will cause the lender to suspect that you may have acquired (or attempted to acquire) new debt, and that WILL throw a red flag if the lender doublechecks your credit at the last minute and you are borderline on any of the approval requirements.
Now, as an experienced mortgage loan officer myself, I can say that it is unlikely that will happen (it really depends on your approval and type of loan you are getting, i.e. DU/LP, FHA, VA, ALT, or sub-prime), but do you really want to take the chance when you could just as easily wait?

 

[Codewiz]

Originally posted by: Vic

Originally posted by: Codewiz
" Your loan officer told you not to acquire any more debt prior to closing for a reaso"

Just FYI, getting credit is not the same as acquiring debt.

But an inquiry will show on your credit report, which will cause the lender to suspect that you may have acquired (or attempted to acquire) new debt, and that WILL throw a red flag if the lender doublechecks your credit at the last minute and you are borderline on any of the approval requirements.
Now, as an experienced mortgage loan officer myself, I can say that it is unlikely that will happen (it really depends on your approval and type of loan you are getting, i.e. DU/LP, FHA, VA, ALT, or sub-prime), but do you really want to take the chance when you could just as easily wait?

Correct, I wouldn't. I went with an FHA loan which I figured would be the least likely to be affected but I DO NOT want to delay closing over a couple of wasted hours.

 

[Vic]

Originally posted by: HomeBrewerDude
but you are acquiring more potential debt

That is irrelevant. Potential debt is more positive than negative to lenders, as it represents the availability of emergency funds for the customer.
What concerns lenders the most is that the customer applied for the new home loan, was approved based on certain credit and capacity (debt/income) requirements, and then went out during the loan process and made some big purchases (i.e. a new car) that would make the customer unapprovable at time of funding (i.e. new car payment makes debt/income ratio too high). In the opinion of lenders, this is loan fraud, it could jeopardize the lender's ability to sell the loan on the secondary market post-closing (which is crucial to the lender), and just the hint of this type of activity to an underwriter (whose job -- in essense -- is to ensure the salability of the loan) will cause them to jump like a scared cat and turn down the loan.
Part of the issue here is that it takes 1-3 months for a new credit line to show on a customer's credit report after it is created. So the underwriter has no way of knowing if it's just an inquiry or if the customer just charged up $100k.

Don't take chances. Wait.

 

[rahvin]

Find a local appliance dealer that all the local yokels use, getting 3 things together he should cut a deal on the prices (probably much better than best buy or sears could do), provide free delivery and may even toss in extended warranties for free. AND he will deliver quicker.

 

[dirtboy]

If you apply for new credit it can screw up your loan. Lenders can and usually check your credit up to the last hour, so don't go doing anything foolish until the papers are signed.

 

[dirtboy]

Originally posted by: Yax
If you've been approved already then its no problem. It wouldn't impact anything. They would've pulled your credit score already anyway and applying for a couple of cards won't lower your credit score to the point where they'll deny you credit unless your score was 620 only.

Not true.

 

[dirtboy]

Originally posted by: isasir

Originally posted by: Codewiz
I would also rather not have my mortgage show up on my credit report until after I have my store credit cards.

I don't believe this will be an issue as the mortgage likely wouldn't show up in the credit report until January.

There's no reason to wait for your mortgage to show up on your credit report.

 

[dirtboy]

Originally posted by: HomeBrewerDude
you could call up a current card and have them reduce your creditline by 5k or so. but seriously, why not just wait.

That would be a good idea if you wanted to lower your credit score. Wow, the misinformation in this thread is scary.

 

[HomeBrewerDude]

Originally posted by: dirtboy

Originally posted by: HomeBrewerDude
you could call up a current card and have them reduce your creditline by 5k or so. but seriously, why not just wait.

That would be a good idea if you wanted to lower your credit score. Wow, the misinformation in this thread is scary.

it may not necessarily help, but it doesn't necessarily hurt either. it depends on how much potential credit he has, and how large his balances are.

 

[woowoo]

Just pay with cash

 

[Codewiz]

Originally posted by: woowoo
Just pay with cash

Ummm, we did an FHA loan because we don't have A LOT of cash. We are going to be paying cash for things such as paint/supplies and new furniture. We want Sears or Best Buy because we will have zero interest for a while. My wife and I are in the situation where she just graduated with her masters and we have a high combined income. We just haven't had the time to save up a lot of money.

One of the reasons we got into a house at the moment is because I travel a lot. We also happen to live in ghetto apartment. My wife doesn't feel very secure when I am not there. If we were to get into a nice apartment for the size we want(2 bedroom), we might as well buy a house at that price point.

 

[Mermaidman]

You can apply for
the Best Buy store card
on the Best Buy web site. Do
that before heading out to the store!

 

[mugs]

I don't know about BestBuy, but I think Sears gives you 10% off the day you open the account... so it would be to your disadvantage to open the account now.

 

[flot]

Originally posted by: Codewiz

Originally posted by: flot
It probably wouldn't impact anything, but you still shouldn't do this. Wait until after you close. You certainly can survive in your new place for a week or two without having to go on an appliance buying shoping spree. If you honestly don't think you can, then you are sorely unprepared for the realities of owning a home.

Umm first home, no refridgerator. We need a washer and a fridge.

Do you need them more than you need a mortgage?

No one needs a washer/dryer. You can easily get by for weeks without one (well, actually, months or years). As for a fridge - sounds like that IS a valid priority, but again, no one ever died because they didn't have a refrigerator the first couple days they lived in their new house.

There's no reason to stress out about that now. Hell, there are a dozen other reasons you might not even close the day you think you'll close. Do your research, decide what you want to buy, and AFTER you have the keys to the house, go apply for credit and pick it up. As Mugs pointed out, you can probably manage to save 10% that way if you go to the right stores.