I received my letter yesterday from the underwriter approving me for my mortgage for the townhouse I want to buy. (I am SO relieved...) I was worried because I had two collections that I am planning on beating into deletion that could have caused problems. Fortunately, the terms do not include having to pay those two collections ($148 and $80) off. My scores when they pulled the CR were 669 TU, 676 EXP, 683 EQX with a 42% total utilization of available credit sources. I was able to put 20% down thanks to my 401k, so I was also approved for a no-fee HELOC up to the 85% LTV amount at a floating prime+0.25%. I'm not actually using any of the HELOC for the purchase, I just have it as a safety because I wanted a 15-year instead of a 30-year mortgage (4.25 5/1 instead of 4.63 saves me $3200 over the first four years). My total monthly outlay (P&I, taxes, association) is going to be about 20% higher than my current rent, and I'm concerned more about cash flow (what's done in my record to date) than income stability. I know not to make any gigantic short-term purchases on credit between now and my closing date. How should I expect that my scores will change as long as I don't access the HELOC? I'm hoping its for the better, but is there a short-term drop?
