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How long do I have to wait after applying for any "new" credit (car loan, new credit card) before applying for a loan?

by greta81731 from Palo Verde, California. Aug 4th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

You can apply right away.. there is no waiting period.. but the lender will want a statement from your "new" credit so they can add the payment to your debt to income ratios.. Lenders will always say, "Don't apply for any new credit until your mortgage closes".. because if the lender pulls a new credit report just before closing and they see credit inquiries that were not there on the original credit report, then they will hold up funding, ask about the inquiry to determine if any new credit was issued.. if there was, then the lender will require a copy of your statement, then the file goes back to the underwriter to determine that the new debt did not put you outside of the allowable debt to income ratios, and then if loan doc's have not expired, they will fund and record your loan.. It complicates your closing and will definitely cause a delay if you apply for new credit while your loan is still working.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Aug 4th 2016
Scott Fix (ScottFix)
#1346 ranked lender in California - 184 contributions

Greta, Excellent Question. Most loan professionals ask that you refrain from opening up any new lines of credit (3 months) before starting the loan process and during the loan process itself until completed. Reason being, it can cause your loan debt to income ratios to be thrown off, delaying or even keeping you from qualifying depending upon the size of the new debt. Not opening new lines within 90 days allows any new debts incurred to hit your credit file prior to applying for the loan. Some vendors, (automobile, bank personal loans etc) will not immediately report the debt to the bureaus so it allows enough time for them to at minimum, report the new debt with one payment. Now, after the loan has closed and you are in your new home or the refinance on your existing property is complete, you can now get into another new credit line without worry. All the best, Scott.

Aug 4th 2016
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