Home Buying in Maryland>Question Details

OneStepForwa…, Home Buyer in Crofton, MD

How long after applying for new credit cards should one wait before attempting to apply for a mortgage?

Asked by OneStepForward, Crofton, MD Thu Jan 24, 2013

I'm building my credit right now, have gotten a few credit cards to up my credit. I don't intend to use the cards very much. However, I now have "hard inquiries" on my credit report. How badly would this affect me to a lender? Last summer, I was just under range for the first time homebuyer FHA loan. Since then, I have had on-time payment history but needed to build on my number-hence the new credit accounts.

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If you applied for credit within a short time span, it should affect your score that much. Maybe a few points. The bigger thing now is your goal. You must be strategic with the new credit cards. You need to use your cards. It does no good to have them and not use them. Credit gets better with payments on time over time. 1) keep balance to limit at 30% or lower. 2) do not have accounts with $0 balance. Keep a small balance so you can make a payment each month. You are establishing a good track record. Remember your objective is to increase your score. Plan your work. Work your plan. Go to myfico.com to verify these tips. Hope this helps.
0 votes Thank Flag Link Thu Jan 24, 2013
In using your new credit cards do not charge more than you can pay in full the next month. Do this for each card every month. This payment process will improve your credit score quickly.

Greg Myers
RE/MAX Realty Group
0 votes Thank Flag Link Thu Jan 24, 2013
Hello OneStep,

It depends on your credit. your request for a new card will show as an inquiry so it may not have a profound effect on your credit.

Good luck
0 votes Thank Flag Link Thu Jan 24, 2013
The extent to which inquiries affect your credit score varies. In general though, if you only have a few in the last couple months, that doesn't affect you much. New accounts help, as long as you're careful not to exceed 30% of your credit limit at any time prior to applying for a mortgage. The less of your credit line you use, the better.

I'm a lender and would be happy to pre-qualify you or, if you don't qualify yet, tell you exactly what extra steps you need to take in order to. Give me a call at 443-283-2922 or send me an email at rbourdeaux@waterstonemortgage.com. You can also read this recent post on my blog about improving your credit scores: http://richardbourdeaux.waterstoneblog.com/1665/improve-fico…

We can do FHA loans for people with lower scores than most lenders, so it's worth it to give it a try. Have a great day. I look forward to hearing from you.
0 votes Thank Flag Link Thu Jan 24, 2013
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