Any dangers in applying for a credit card after I get mortgage preapproval? I have a good score and I'm wanting to get in on the SPG AMEX offer before it expires on Monday. I wasn't sure if the banks re-ran your credit after the initial one (surely it wouldn't prevent me from getting the loan, but didn't really want to risk it)
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posted: Aug. 19, 2011 @ 9:24a
Did you pre-approval require a credit check? I got pre-approved on my mortgage, it was just a letter from BOA that said "this person should be good for this amount", but they didn't run my credit. I needed to go through a credit check for mortgage approval. Depending on your credit history, you could apply for the card. I.E. you haven't applied for any cards in the last year. For one of my mortgages, I had applied for a new card 2 months prior (that was my only CC app in previous 12 months), and I'd called and requested a CL increase on another card. During mortgage approval, it resulted in the underwriter calling me for clarification. Mortgage was approved with no hiccups.
If you've applied for multiple cards recently, I wouldn't apply for SPG before your mortgage is done. There will be another SPG sign up deal next year (I hope!)
Senior Member - 3K
posted: Aug. 19, 2011 @ 11:03a
I wouldn't apply for anything. Some lenders pull your credit reports multiple times through the loan process. It very well could jeopardize the mortgage.
posted: Aug. 19, 2011 @ 11:11a
Not sure what this particular credit card app could do to your mortgage process but some check credit all the way to closing.
posted: Aug. 19, 2011 @ 11:12a
In my opinion, the bonus points simply aren't worth the risk.
posted: Aug. 19, 2011 @ 12:35p
yup. Not worth it. Preapproval does do credit check but it does not stop them from checking your history again.
posted: Aug. 19, 2011 @ 12:40p
Several lenders are doing credit check a day before closing now a days.
Senior Member - 3K
posted: Aug. 19, 2011 @ 1:02p
I am a former Realtor. I join the others advising you NOT to do anything credit-wise until the mortgage has closed for a few days. I had too many clients who went out and bought furniture and appliances on credit before the mortgage closed lose the mortgage or have to sit and explain how they were going to pay for everything before the loan officer would close. They ALWAYS RECHECKED CREDIT at the last minute before closing on the mortgage/home purchase.
ANY credit application has some effect on your credit score. Usually, it's not much, but still a mortgage lender gets skiddish easily. It was true 40 years ago and it's true now.
posted: Aug. 19, 2011 @ 1:22p
It probably won't jeapordize your mortgage but it certainly can . The situation where people ran out and bought furniture and appliances is a bit different since there is additional debt. Just applying for the card without running up a balance will not cause additional debt to skew your approval ratios
posted: Aug. 19, 2011 @ 1:24p
SUCKISSTAPLES said: It probably won't jeapordize your mortgage but it certainly can . The situation where people ran out and bought furniture and appliances is a bit different since there is additional debt. Just applying for the card without running up a balance will not cause additional debt to skew your approval ratios
but trying to spend $4500 in 3 months in order to get an extra 20k starpoints would skew the ratios.
posted: Aug. 19, 2011 @ 1:39p
I think I did apply for one card in the interval, but I knew my score was quite high. My feeling was that the $500 I was getting with the card was worth the 1% chance that I'd be charged an extra 1/8 percent on my mortgage. I wouldn't worry too much unless you know you are in a borderline category or you are working with a small lender who might care about these things.
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