TWO WAYS NEW CREDIT OR NEW INQUIRIES COULD RUIN YOUR HOME PURCHASE
NEW CREDIT OR NEW INQUIRIES MAY INVALIDATE YOUR LOAN APPROVAL
New credit or new credit inquiries can raise a red flag when you’re in the middle of a loan application. That’s because mortgage lenders are required to look into this, and add the monthly payment on the new debt to your overall debt scenario. This may invalidate your prior loan approval, or at the very least, delay your closing and cause you to miss important deadlines in your purchase agreement.
NEW CREDIT OR NEW INQUIRIES MAY LOWER YOUR CREDIT SCORE
Any new inquiries on your credit report may negatively impact you because new credit inquiries have a 10% impact on your credit score. Your score isn't impacted when you check your own report. It's only affected if a potential creditor checks your credit report. These include department stores, furniture companies, credit cards, auto finance, and mortgage companies.
Any changes to your credit score could impact your ability to get approved for a home loan or even invalidate a prior loan approval.
If you're thinking of applying for a mortgage within the next 90 days, it would be good to wait until after your loan closes before you apply for any new credit.
Source: Momentifi