Why You Shouldn’t Apply for a New Credit Card While Shopping for a House

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If you’re looking for a new house and plan to apply for a mortgage, the lender will closely scrutinize every aspect of your finances. If a lender approves your application, it will check your credit again shortly before closing to see if there have been any changes that are cause for concern. Applying for a new credit card while looking for a house could jeopardize your chance of getting approved for a mortgage at a competitive interest rate, or of getting approved at all.

How a Credit Card Application Could Affect Your Mortgage
If you applied for a credit card, the issuer would check your credit report. That is known as a hard inquiry, and it could negatively affect your credit score. The drop might be relatively small and temporary, but it could make a difference when applying for a mortgage.

A FICO score is based in part on the average age of your accounts. A new credit card would lower the average age of your accounts and could have a particularly large impact if you had few other accounts.
Even a small drop in your credit score could have a significant effect. If your lender has strict guidelines, a decrease of just a few points could cause you to get a higher interest rate than you otherwise would have, which means you could pay thousands of dollars extra over the life of the loan. Your mortgage application might also get rejected altogether.

A new credit card application could create uncertainty in the eyes of the lender, even if you had a good credit score. The company might worry that you would accumulate a lot of debt and struggle to pay your mortgage.

When to Apply for a New Credit Card
A hard inquiry could stay on your credit report for a year, and your credit score would gradually rebound after taking an initial hit from the inquiry. If you want to apply for a new credit card, do it at least three to six months before you submit a mortgage application. That will give your credit score a chance to recover from the effects of a hard inquiry and allow you to show the lender that you didn’t go overboard on spending and that you paid your bills on time. If possible, wait to apply for a credit card after you close on a house to avoid any negative effects on your credit score.

Don’t Jeopardize Your Chance to Purchase a Home
If you need to buy furniture, appliances, and other things for your new house, you may think it makes sense to apply for a credit card, especially one with a low interest rate and/or rewards. The fact is that doing so could hurt your chance of getting a mortgage at a low interest rate, or even of getting a mortgage at all. Keep your finances in the best shape you can and don’t give the lender any reason to be concerned about your ability to repay a loan.

About the Author
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Greg DiGiorgio is a highly reviewed Arlington MA Realtor who is a dedicated, passionate, and market-savvy professional who puts his clients’ satisfaction before all else. His attention to detail, superior people skills, broad knowledge of the real estate industry as a whole, and his pure determination to indulge his clients with first class service sets him apart. In addition to Greg being an Accredited Buyers Representative-ABR, he understands the power of creative, well-organized and highly effective marketing and offers customized marketing plans that maximize property exposure to the most qualified buyers. He has appeared several times on Fox 25 News where he was interviewed on current market trends and conditions. A real estate transaction is really about managing people, their desires and their finances. It is an intricate and consequential negotiation.


Greg understands that it is important to secure not only the most able buyer, but also to the one that is most likely to close the deal. When so much is at stake, Greg is the one you want to represent you. His fair yet aggressive negotiating style and protectiveness of his clients’ best interests and ultimately, their assets, has gained his respect with colleagues and clients alike.


Greg also knows that every transaction represents the most important purchase or sale a person can make, and he takes every precaution to ensure that communication is impeccable with all parties involved from beginning to end. Whether it’s patiently guiding first time buyers through this exciting process or following through with clients’ needs long after the transaction is over, Greg’s warm, caring yet efficient business style will turn you into a client for life.


Driven


Greg grew up in the Greater Boston area and has a deep appreciation for the North East way of life. He attended The University of Massachusetts at Dartmouth where he graduated with a Bachelor of Science degree in Marketing, with a concentration in Marketing Research. Greg’s professional background is rooted in the technology sales & marketing. As a result, he learned to adapt to many different people and situations quickly and competitively. The insight that he has gained from many years of involvement in bringing all components of a transaction together smoothly has granted him a unique perspective and approach to the real estate industry. His enthusiasm and tenacity has allowed him to emerge as one of Greater Boston’s finest Realtors, and one of the highest reviewed amongst Arlington MA Realtors!


My Goal


My goal is to provide the best experience possible to my clients while helping them achieve their real estate goals. My streamline systems and use of technology ensure a smooth ride along the way. Whether it’s a first-time buyer, a seller, or investor, I strive to gain lifelong clients and friends by providing them with a fun, relaxing, but yet educational experience throughout the entire process.


Objectives for my Buyer Clients


Counsel session to determine wants & needsSchedule times to view properties

Run comparable analysis report for subject property

Help negotiate terms of the offer

Provided options for home inspectors

Help negotiate & finalize terms of Purchase & Sale Agreement

Assist in finalizing finances with Mortgage Broker

Handle any other paperwork and/or tasks including meeting mortgage commitment deadlines to making sure the transaction closes on time.

I keep an open door policy with all my clients even after the sale should they have any questions, or need help with any of their real estate needs. The closing of a real estate transaction is not the end, but just the beginning of a relationship.


Objectives for my Seller Clients


Listen carefully to make sure your goals and objectives are clearly understood

Explain the home selling process thoroughly

Discuss agency relationship

Price your home accurately

Stage your home for sale

Plan & implement a proven & innovative marketing plan

Work diligently to sell your home quickly and efficiently

Follow up with open house leads & showing brokers to obtain feedback

Work hard to ensure that each step of the transaction is running smoothly

To ensure that all smoke & carbon monoxide detectors are installed and working correctly, and to obtain certificate from town/city

To obtain final payoff for city/town water bill

“Most Importantly to communicate with you consistently and efficiently throughout the entire home selling process”

Certifications and Recognitions


Winner of Leading Edge Real Estate’s Outstanding Creative Marketing Award. Certified Residential Specialist (CRS)

Accredited Buyers Representative (ABR)

Member of the Institute of Luxury Home Marketing (ILHM)

Licensed Massachusetts Real Estate Broker

Member of Greater Boston Real Estate Board (GBREB)

Member of National Association of REALTORS (NAR)

Zoning & Building Codes Certificate

Residential New Construction Certificate

Title V Certificate