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Posted in Mortgage
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Question By
gabo864

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1 Person Helped
if I have several inquiries on my Credit history, Should I wait before I apply for a mortgage?
My Credit Score

TransUnion 737
Equifax 723
FISCO (According to my Discover account) 722

My wife score

TransUnion 784
Equifax 765
I don't know her FISCO, but she's always had a higher credit score than me. A year ago when we got a loan for a car hers was 810

We both have stable jobs and our household income is about 75,000 a year. we have about $7000 in savings and a loan for $8000 for her car (we pay about $200/mo). Honestly we could be doing better in savings so we are currently working on it (saving about $1000 a month now).

I usually apply for most of our services so I have several hard pulls from Verizon and ATT, also one from American Express and recently open a new checking account which was also a hard pull (I didn't know they did this for checking and savings accounts)

Sadly over the last couple years I've had a total of 11 inquiries =/ my wife has only 1.

We are thinking about getting a home, but I'm not sure if we should wait for some of those inquiries to drop or if we should start looking into it. Any advice for us?

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Steps to purchasing new home

Helpful to 34 out of 36 people

I want to encourage you to please get with a good realtor who can connect you with a good mortgage company. A good mortgage company will do a hard credit pull against your credit to determine what position you are in, to purchase a house. I know, you may not want another hard credit pull, but this is a very very important hard pull, as it will tell you how close you are to actually purchasing a home. Sometimes a person may think one certain credit factor is holding them back from purchasing a house, but it may not be anything holding them back, or they could be accurate about just having that one credit factor as a hinderance, or it could be several credit factors holding them back that is needing to be addressed, before purchasing a house, that they were not aware of. But you wont really know until you get a mortgage professional to pull, review, and explain your credit report. Then you will truelly know how close you are to purchasing your new home.

Realtors are willing to help you find a home when your credit worthiness has been validated by a mortgage lender. If by chance the mortgage lender discovers that you have some bad credit factors that wont allow you to purchase a decent house, in the price range that you prefer, this mortgage lender or the realtor can introduce you to a good and reputable credit repair company that may be able to assist you with repairing your credit, for a cost, to get you in quicker position to purchase a home, than you can do yourself alone.

Its a process, but to do it alone without reaching out to good professionals can cause time to be wasted due to lack of knowledge. Please gain the knowledge you need through a good reputable professional realtor, mortgage lender, and possibly credit repair company. Again I say good professionals because you may have to look around until you find a group of professionals that you are comfortable with. Talk to friends and family to get referrals of good reputable realtors, morgage lenders, and etc.

Purchasing a home for your family maybe even closer than you can imagine, but it could be farther away, which you can find out what additional steps you need to do, to get closer to your future home purchase.

Finally, whatever you do, continue to:

(1) save money and get into a 401k plan at your job and have your wife do the same at her job, if this has not been done already. 401k plans not only allow you to save money, but to also take out repayable loans against that saved money, without affecting your credit report. You can use that 401k loan money to pay off bills, as a down payment to home, address an emergency family medical cost, family vacation, car or house repair, etc.

(2) avoid opening up new credit card accounts and loans

(3) if you need a new car, try to purchase a lease because the balance that you own on the car lease will be a lesser debt amount than purchasing a brand new car by a conventional loan, depending on what type of car you are purchasing. Always shop around for the best deal, because some car dealers offer $0 down with very low interest for qualified customers, which means your credit score has to be high.

(4) focus on paying off existing debt, if you can and if it is necessary.

(5) Avoid making late payments because it can negatively affect your credit score, if that bill collector reports to the credit bureaus.

(6) be smart as you can, with budgeting your money when it comes to making new purchases and paying monthly maintenance bills, with asking yourself and your wife, do we really need all of this or could we get this at a better price some where else, because the less you pay now, is the less debt you will have to repay and the more money you will have to manage and save.

(7) Pray and ask Jesus to guide you in your finances and through all life decisions. My husband and I have experienced alot with purchasing our first home and working towatd purchasing our second home. Without Jesus, we would not be in the position that we are in today because you need wisdom and you need to communicate with professionals that have wisdom to know how to help you and want to help you. With Jesus all things are possible, because Jesus can lead you through all of this, as well as direct your steps on how to handle your finances. I am not saying everything will be easy but at the end, it will be worth it.

Have fun in the journey and enjoy your new home in your near future. You may already have your new home.

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224 People Helped

Helpful to 17 out of 17 people

Hard inquiries lose their negative impact realitivly quickly with most scoring models.  As long as a mortgage lender does not see a lot of pulls in the past 6 months, this should not be an issue.  The underwriter typically looks more at what the pull was for.  If you have many pulls that maybe mortgage related within the near past,  then they will start digging deeper to make sure that you did not get a major loan that is not reporting yet.

Please also remeber that those score you posted may NOT be the ones that a mortgage lender sees.  Every lender may use a different scoring system. TU,EQ,EF are ONLY data bases, and yiou never know if a lender maybe using a FICO 2, FICO 27, Vantage, or even thier own scoring model.  This is why you shop for major loans. Just make sure that when you shop for your mortgage you apply with 2-5 lenders within the same week. This way for the next year or so, while the hard inquiries have an impact, the scoring models will consider all of them as only one inquiry.

Yes even opening an aaccount with a bank causes an inquiry, as they will not give you an account if you have very bad history.

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3 People Helped

Loans

Helpful to 3 out of 3 people

The inquirys will not hurt you as much as you may think. Keep in mind whenever you apply for a Mortgage, the company will always use the lessor of the two scores with married couples applying togehter. If you wife is able to get the loan by herself that may not be a bad idea as she would get a much better conventional rate due to her higher score. If you guys are considering FHA it wouldnt matter. Both scores are good. :) 

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Credit Help

Helpful to 3 out of 4 people

I recently used Select Us Credit Coaching.  I could not be happier with the results Tom produced for me.  Give them a call at 888-714-5312

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2071 Contributions
3184 People Helped

Helpful to 1 out of 2 people

I have had as many as 14 Hard Inquires at one time on my Credit Reports.  as Long as they are spread out you are ok. 

Currently I have 4 on one and 5 on the other here on CK. 

3 Contributions
4 People Helped

Inquiries

Inquiries usually stay on your report for a minimum of 24 months, they can affect you in a negative with very minimal impact.

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0 People Helped

All good

Helpful to 0 out of 2 people

It's not going to affect at all. Your doing great

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