Is it true that right before getting a mortgage, that you are required to close out a LOT of your open cards? For example, if I have ZERO debt but have about 100k extended to me in credit cards, line of credits, etc.. then will a mortgage broker force me to close these aco****s before getting a loan? Thoughts on this or experience? Whats the truth on this matteR?
It's true that they want to you close alot of your unused cards. However, there has been a lot of discussion about this. I think it was Marie who said that if you close more than 2 cards in 6 months your score will take a hit. I don't if it's true. I've closed 2 accounts so far. So I really don't know.
I wouldn't close out anything unless your mortgage underwriter specifically requests you to. I had a lot of open unused credit cards, and I did not close anything.
If you owe $0.00 on a few accounts and haven't used them in years and WON'T use them any time soon...FINE close them...1-3 in 6 months. Closing accounts has an effect on DEBT TO CREDIT LIMIT RATIO...and that effects your F.I.C.O. score...
Mortgage brokers always "suggest" closing unused accounts, but don't do it. Any score over 680 will get you prime rates. If you feel you have too much available credit, then close a couple, but only because you want to. Dani
Okay, that sounds good. I just wanted to be sure that all my efforts in getting prime cards now were not going to be moot if all that happened later was that I would end up having to close them.. cool.
