thom02099 wrote:This is the best course of action now. As others have said, the damage is done. And it could jeopardize your loan. I don't say that to be mean, but you need a reality check. You didn't mention your scores in all this, but depending on where you are, this could mean the difference between approval and denial, or approval with a higher required down payment. An HP such as this could result in a minor ding such as 10-15 points, or you could lose 30-40 points. At other forums, anecdotal reports are all over the place as to how many points can be lost by applying for new credit right before getting a mortgage. If your scores are in the mid 700s, probably won't have a major impact. If you're in the low 700s, could drop you from one tier to another in interest rates. If you're borderline 700s to upper 600s, this could be a deal breaker, could drop you below what they are comfortable in approving.
And in my case at least, with both getting a mortgage and getting a refi, the lender ALWAYS pulled the reports twice, once at the very beginning and once just before closing to make sure that I hadn't done something I shouldn't have. YMMV, but I've read more reports that this is the case than not.
I know. I really don't need to be called an idiot anymore, but I don't blame you for doing so. I knew since last year I was going to be applying for a mortgage this spring. I'm semi new to all this credit knowledge. 3 years ago I began the mortgage process and was told by a broker that I needed credit cards. According to him, I didn't have bad credit but I barely had any credit at all. Just car loans throughout my history all in good standing. I was always under the impression that credit cards were for suckers, and one shouldn't spend money one doesn't have. Apparently I was wrong. So I initially applied to Cap One as they were the only ones who would take on a credit newbie. First card was a measly $300 CL. Fast forward 6 months and Cap One gave me a rewards card with $1,000 CL. Both cards had annual fees but I was building history so I stuck with it. Turns out that broker was right, around 18 months later my score went from lower 600's to above 700. At that time I decided to try for prime cards, let them age and get rid of the subprime AF Cap Ones. I was approved for two Amex revolvers and was going to transition away from Cap One after the new ones aged a little. I also took on a Chase to keep my overall CL high. I cancelled one Cap One and goal was to cancel the other this year. A friend talked me into Discover because of the good rewards and also the exceptional US customer service and I figured hell why not. I'm not going to need credit again after this mortgage so I might as well make the moves now and then let em all age the next several years.
My thought process was to hold off until after beginning the mortgage process, but to do it before the mortgage kicked in because the huge drop in score a new mortgage produces for a time period.
Anyway, that's a glimpse inside my credit ignorant head. I pay all my bills on time, try not to spend money I don't have, but other than that I don't dwell on credit 24/7. I have 4 kids that I spend as much time with when I'm not working crazy hours at an insanely busy job. Hindsight now I see how obviously stupid what I did was. However during the process it seemed completely logical to me with no harm intended.
Bottom line, I'll find out tomorrow how bad I really screwed up. My loan officer is a stand up guy so I'd prefer to be upfront with him instead of embarrassing him with a surprise later on.