Here is a question for all of you "financialists" out there...

[AKL_Megs]

I wish Suze Orman were here...

So, we are looking for our first home. We got pre-approved by our bank for MORE than the amount we plan on spending on a home. My DH and I both have near perfect FICO scores. We have credit cards, and we use them and pay them off each month. Other than car loans and student loans, we have no debt.

With that said, we plan on buying before December 1st to take advantage of the $8000.

I had been planning for us to open a Disney Rewards Visa and use that to pay for every single thing we buy in our lives to get points. (Of course, like I said, we pay our CC's off each month.)

Yesterday in the mail, we received a "pre-approval" application from Chase for the Disney Rewards Visa card, and upon our first use, we get 400 free points! (We had wanted to open one at one of the kiosks at WDW when we were last there, and all they were offering were beach towels! ) It sounds like an offer too good to pass up!

Here is my question... would opening this card so close to buying a house be a bad idea? Or since we were already pre-approved for our mortgage, will it really matter?

 

[Disney Doll]

Shouldn't be a problem.

 

[Serena]

I wouldn't do it.

I need to add, with your credit score, it probably won't hurt.

 

[DMickey28]

With your scores, odd's are it won't hurt but the general rule is not to do it. You don't want to do anything major credit wise when you are going for the mortgage.

That being said, you really should get a move on looking at houses!! We lucked out and ended up loving a house that is empty so closing doesn't have any major contingencies on it but we were interested in another house that we lost but it came back on the market a week later. Those sellers had a contingency that they had to have the house that they wanted to buy pass inspection and secure financing for it. Closing with that house could easily have been pushed out to 75 or 90 days cutting it real close to the Dec. 1 cut off.

Right now we are scheduled to close on 10/16 giving us plenty of room in case something pushes it out.

Good Luck ... such a awesome step in life but it's so freakin' scary too!!

 

[AKL_Megs]

With your scores, odd's are it won't hurt but the general rule is not to do it. You don't want to do anything major credit wise when you are going for the mortgage.

That being said, you really should get a move on looking at houses!! We lucked out and ended up loving a house that is empty so closing doesn't have any major contingencies on it but we were interested in another house that we lost but it came back on the market a week later. Those sellers had a contingency that they had to have the house that they wanted to buy pass inspection and secure financing for it. Closing with that house could easily have been pushed out to 75 or 90 days cutting it real close to the Dec. 1 cut off.

Right now we are scheduled to close on 10/16 giving us plenty of room in case something pushes it out.

Good Luck ... such a awesome step in life but it's so freakin' scary too!!

Yes, SO SCARY! We really want the $8000, but finding the RIGHT house is worth more than that, so if it means we miss it, so be it. :confused We start looking at houses on Tuesday, short sales first, empties or foreclosed, etc., and then everything else. Hopefully "our house" pops out quickly!!!

Good luck to you, too!!!

 

[kirbsam]

do it, it will not matter at all. you are preapproved, and you have great credit scores. dont wait.

 

[Buckalew11]

I don't think it will matter either.

I think the most important thing is to remember your monthly payment limit as you are looking. Just because the bank pre-approves you for X amount you are right not to get it in your head that is the new price you can (will) pay.

When we decided to build, the bank had no problem approving us for what our first estimate was on building the house I wanted to build. Thank God that WE had a problem with it. I ended up changing house plans so I would not be going over the budget that we had planned on.

Good luck in your search. I hope it all comes together for you--house, $8000, and WDW visa card for lots of points!

 

[1PrincessMomma1]

They will pull your report again either the day you close or the day before. So think long & hard.

 

[golfgal]

I wouldn't do it. It won't do much for your credit score BUT the bank is going to want to know why you are opening new credit right before you buy a house. I would wait until after you buy the house-you can probably get the same deal.

Just an FYI--you need to CLOSE on the house by Dec 1st. in order to get the federal money-just just have a purchase agreement. Most closing companies are backed up a couple months so you better find something SOON!!

 

[MagicalMom]

Opening a new account will drop your FICO, which could also raise your interest rate on your new mortgage. If you are sure your credit can stand the hit go for it. Just keep in mind the bank is going to wonder why you suddenly need money so close to closing.