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I've heard you shouldn't take out a loan or open new credit prior to applying for a mortgage. Is 3 or 4 months enough time to pass?

by andrea.palacios583 from Athena, Oregon. Jan 21st 2016 Reply


Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

The general thought is that new loans and credit will affect the credit scores. Each situation will be different. As long as you disclose the new debt, if it doesn't show up on the credit report, you should be fine. I would be happy to help you with any mortgage needs you have.Derick CondronDcondron@rightstartmortgage.com

Jan 21st 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

Yes.. The idea is that if you apply for new credit while applying for a new mortgage at the same time, it could potentially raise your debt to income ratio and effectively lower the amount you would qualify for.. plus, there's much more troublesome documentation to obtain as well.. plus, it's possible it will lower your score which could result in you having to pay a higher interest rate. 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 WilliamAcres.com NMLS# 226347

Jan 22nd 2016
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

Adding new credit will affect your debt to income ratio as well as your credit score.

Jan 22nd 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

That is a good basic rule for most people to follow. Especially once in actual process of a loan. At the same time, it may of many not make a difference on your application. Any new debt will need to be calculated into your debt ratio. For one person, this could be a deal killer, for the next, it might not mean anything.

Jan 22nd 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

Sometimes it makes no difference whatsoever, but new accounts can lower your score until they have been open 6-12 months. Don't guess, let a professional take a look and advise you, there is no cost involved.

Jan 22nd 2016
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