New credit right before mortgage pre approval? Advice please!

[lshin]

Ready to apply for pre approval in a couple of weeks however I only have one open tradeline that is only a few months old. Should I apply for new credit now to boost score?

[Morpheus1967]

What other cards do you have? How long have they been open?

[lshin]

What other cards do you have? How long have they been open?

 

I only have a wells fargo secured card $400 opened in november. since I have cleaned up a lot of stuff and want to get home loan by march, but simulators say new credit will boost score as well as help me because i only have one open trade line.

[Brian B The Loan Professor]

Based on your scores that may not be enough even if you can get things higher - what is different on TU that the scores are 200 points higher??

.......to qualify for a mortgage you must have the scores as well as a history of positive credit

Do you have any closed tradelines that were paid as agreed and then closed?

 

Brian B

Mortgage Forum Lead

[lshin]

Based on your scores that may not be enough even if you can get things higher - what is different on TU that the scores are 200 points higher??

.......to qualify for a mortgage you must have the scores as well as a history of positive credit

Do you have any closed tradelines that were paid as agreed and then closed?

 

Brian B

Mortgage Forum Lead

yes i have 3 tradelines that were deleted from tu, but not yet from the other CRAs. One I PFD, the other two will drop off by june.

[Brian B The Loan Professor]

Do you have any positive closed tradelines to go with the new one you have

You will need to show a credit history - (rough rule of thumb - 3 tradelines 2 years or older with at least 1 with a 2k limit)

 

Brian B

Mortgage Forum Lead

[lshin]

Yes I have 3 positive closed tls. 12year history.

[lshin]

I spoke with wells fargo. they said i should open at least one tl. I ended up opening 3! (I kinda got carried away I was so excited to get credit. I haven't had credit in over 10 years.)

 

I applied for 4 got 3 denied 1.

 

What do you think it will do to my credit scores?

 

How will this new accounts effect my home pre-approval?

 

Now that I look back I should have restrained myself, but what's done is done.

 

so currently my file looks like this:

 

• 3 positive closed tl
• 1 tl 3month positive history
• 3 new tl (31k total credit between them)
• 1 denial of credit (8 total inquiries)

Im scared now that i might have ruined my chances to get home loan.

[futurehomeowner?]

If you are trying to get approved like next month you are going to have to go through some hoops. They will need an explanation why you are opening a bunch of credit lines.

[lshin]

If you are trying to get approved like next month you are going to have to go through some hoops. They will need an explanation why you are opening a bunch of credit lines.

 

i don't mind LOXs, I just hope it doesn't hit my credit score too hard.

[lshin]

Do you have any positive closed tradelines to go with the new one you have

You will need to show a credit history - (rough rule of thumb - 3 tradelines 2 years or older with at least 1 with a 2k limit)

 

Brian B

Mortgage Forum Lead

Yes I have 3 positive closed tls. 12year history.

[Morpheus1967]

 

If you are trying to get approved like next month you are going to have to go through some hoops. They will need an explanation why you are opening a bunch of credit lines.

 

i don't mind LOXs, I just hope it doesn't hit my credit score too hard.

 

You can't have it both ways. You need the tradelines as Brian said. But the underwriter will definitely want to know what the deal is with all the new cards. You will lose a few points for the inquiries (negligible) but will be hit for the drop in your AAOA. At this point, I would wait until the other CRAs catch up with TU and see where you stand then. And keep those new cards at a zero balance.

[lshin]

 

 

If you are trying to get approved like next month you are going to have to go through some hoops. They will need an explanation why you are opening a bunch of credit lines.

 

i don't mind LOXs, I just hope it doesn't hit my credit score too hard.

 

You can't have it both ways. You need the tradelines as Brian said. But the underwriter will definitely want to know what the deal is with all the new cards. You will lose a few points for the inquiries (negligible) but will be hit for the drop in your AAOA. At this point, I would wait until the other CRAs catch up with TU and see where you stand then. And keep those new cards at a zero balance.

 

Thanks for the advice. I will definitely do just that. I had my hopes on this particular house and scared it will be sold before I am ready. It has been on the market over 30 days already. Thats the reason for the hurry, otherwise I would wait until June when all 3 reports would be 100% clean.