Steps to take after mortgage

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itsmeandrew
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Location: Utah

Steps to take after mortgage

Postby itsmeandrew » Wed Apr 30, 2014 11:43 pm

I am about to close and settle on a house in a week. During the mortgage process the last month, I was required to close my Freedom card. While I was closing it, I asked the rep if I could reopen the same account later on. She said I could within 30 days and depending on past history and a possible credit check it could be reopened.

I want to reopen this account, apply for the Amex BCE and possibly the Sallie Mae Mastercard all before the mortgage reports on my credit.

Do you think this is a smart and realistic move? My FICO is about 725 from Discover, no negatives on my report and about 5% total util. with the highest being 16% on a single account.
Capital One Platinum $500 (2/2010) CLOSED (1/2013)
Wells Fargo College Cash Back $1.2K (8/2011) CLOSED 3/2015
Chase Freedom (Signature) $10K (4/2012)
AmEx Zync NPSL (4/2012)
Samuels Financing $2.9K CLOSED 4/2015
Discover IT $3.95K (7/2012)
Chase Marriott Premier (Signature) $5K (9/2012)
Chase Slate $2.5K (12/2012)
Citi Simplicity $4K (3/2013)
AmEX BCE $9.5K (5/2014)
Chase Amazon $4.5K (5/2014)
Barclaycard Apple Financing $2K (6/2014)
Capital One VentureOne (Signature) $5K (1/2015)


TU (Discover): 760


432521
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Location: USA

Postby 432521 » Thu May 01, 2014 12:11 am

How did they force you to close your account?
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday

itsmeandrew
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Location: Utah

Postby itsmeandrew » Sat May 03, 2014 2:39 pm

They said my DTI was too high. But the cards were and have been for a few months at zero. To finish the loan, they said the cards needed to be closed.
Capital One Platinum $500 (2/2010) CLOSED (1/2013)
Wells Fargo College Cash Back $1.2K (8/2011) CLOSED 3/2015
Chase Freedom (Signature) $10K (4/2012)
AmEx Zync NPSL (4/2012)
Samuels Financing $2.9K CLOSED 4/2015
Discover IT $3.95K (7/2012)
Chase Marriott Premier (Signature) $5K (9/2012)
Chase Slate $2.5K (12/2012)
Citi Simplicity $4K (3/2013)
AmEX BCE $9.5K (5/2014)
Chase Amazon $4.5K (5/2014)
Barclaycard Apple Financing $2K (6/2014)
Capital One VentureOne (Signature) $5K (1/2015)


TU (Discover): 760

MemberSince99
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Postby MemberSince99 » Wed May 07, 2014 6:49 am

That really makes no sense. Closing the card will probably drop your score rather than raise it, and then when you apply again, and open a new account, assuming that happens, that will for sure drop your score.


It sounds like a lender's policy if you don't want to close you should try looking at another lender.


I had thought this might be an issue in my case too with the cards in my signature. I asked the LO about it (mind you I have not even done the pre-approval yet) and she said it shouldn't be an issue provided the score was high and the loan to value was there. If they tell me to close my cards, I'm going to tell them to go pound sand and find a different lender.

takeshi
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Location: US

Postby takeshi » Wed May 07, 2014 7:49 am

MemberSince99 wrote:That really makes no sense. Closing the card will probably drop your score rather than raise it, and then when you apply again, and open a new account, assuming that happens, that will for sure drop your score.

Score isn't the mortgage lender's concern in situations like this. It's a matter of available credit and DTI seen as a risk by the lender. Still, finding another lender is always an option if one doesn't want to close cards.



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