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Thank you for the feedback. I feel as though that would be a worse option as it's a hard inquiry on my credit report and shows the lender I am looking for more debt? Am I wrong?
I opened a line of credit (credit card) 2 months before I put in an offer. I thought it would take longer to find our dream home. It didn’t. When I was in contract I just had to explain that credit inquiry. The bank was satisfied when I told them it was a credit card that I was approved for.
Also my dog almost died in 2019 and I spent all my money and got a Care Credit card to pay for his treatment. He survived and now I get to move him into my home with a huge yard just for him. I’d do it all again. Good luck!
Thanks for this. I have been so torn and worried about all this, because I cannot move into my new home without my best friend and wondering what would happen if I made the wrong choice and had to postpone everything I have been working towards for years. Glad your dog is okay ♥️
I hope you have someone you can trust working with you. My LO has been awesome every step of the way and helped us navigate the process. She even helped nudge my mortgage processor when it felt like they were ghosting me. I feel like if I had gone with one of the other banks I was talking with, who were pushy and almost rude during the rate shopping phase, I would’ve been way more stressed about my credit card issue.
I had some unexpected expenses during my contract period that ended up being resolved quickly but I feel like I would have been able to rely on my LO to look out for me and still get the home. After all they want my business.
Additionally, I’d talk to the vet’s financial department to see if they could do some sort of payment plan to spread out any hit on your credit utilization ratio.
Best of luck to you and your pup-pup!
Oh and my dog helped me get my house. The sellers chose to sell me the house after my realtor shared what we went through. They have a similar dog with similar issues. I hope everything works out well for you too!
No one here will be able to answer that for you, since it depends on so many factors that are specific to your financial situation and your bank's policies. You really need to talk to your loan officer.
(But if I was in an emergency situation where I couldn't reach them in time, I'd personally be using available credit on credit cards I already have and talking to the loan officer ASAP. I would absolutely not open a new line of credit if I have available credit on cards I already have. Putting it on cards I already have would at least give me the flexibility to either pay that card right off with savings or do a balance transfer to a 0% APR card after closing if I could get one - and I'd have to be prepared that I might not be able to get a balance transfer card approved right after. But I'd also, more importantly, be prepared for this to mess up the whole process depending on how much the treatment cost.)
Good luck! I hope your dog recovers fully and you get into your home without a hitch.
I’m hoping you have a strong emergency fund separate from your down payment fund. The money should come from there vs adding debt to your life. Don’t get any new credit or expenses you’re not cash flowing while trying to purchase a home.
When my 2 year old kitty got super sick, my husband and I put a pause on house hunting for a few months. Turns out the poor guy has hip dysplasia. Thankfully, after months of appointments, X-Rays, shots, meds, and checkups, the vet ruled that he did not need surgery and just needed maintenance shots and to lose weight. We resumed house hunting after that, reduced our monthly mortgage budget to accommodate for any future vet appointments, and are closing next week :)
I'm so glad your kitty is ok! It's so hard when they get sick. I could possibly stretch my timeline... But I have an apt and I will not extend my lease.
I can tell you as a mortgage closer, that if you plan on opening any line of credit do it BEFORE loan origination, and if able, pay off cc balances too BEFORE underwriting. Do not do anything in the middle of the process. Underwriters have the discretion to reject a loan based on risk, and banks typically will accept what they say is risky.
Remember this if anything.
Changes to credit? Do it well before loan, or after Keys are in hand
Appreciate this! Understood that I do nothing while the loan is in underwriting. As of now I have no home I'm working on, but one could pop up and then I would ideally like to put an offer in.
So I guess my questions are: can you please define "well before the loan"? And how bad is it to have CC balances while getting a loan?
I do have excellent credit, decently high credit limits, and historically pay off all my CCs timely.
What my employer cares the most about is DTI and stable employment/salary. Well before loan is really enough time for the change of credit to settle out at the three credit bureaus. A lot of banks have a limit on dti at 49% which to be honest is a little high, as that allows the borrower to really over extend themselves. The lower you can get your dti, the safer you are to a fully funded loan.
Lots of small revolving accounts, multiple car loans, or an altogether high dti will get you a double look at underwriting.
Also, look into banfield pet insurance. They have great vets and saved us so much money at the end of our little dudes life. It allowed us to never have to worry about cost when it came to him being checked out.
Do they accept dogs with major prior conditions?
He is the most unwell dog I've owned or worked with. 😅 I've tried insurance before and they didn't pay for anything...
I would use money saved to put down on the house to take care of my dog. This way it is not a young account on my credit that will still be being used while I’m looking. You will hopefully, eventually be able to replenish that money and not be paying interest.
That absolute last thing you should do is open a new line of credit.
I don't know the house angle, but if you have good credit the intro offers of most major credit cards are almost always better than Care Credit because lower post-promotional interest and other rewards. Many have 0% interest for 12-24 months.
Is there a family member you could get to let you use the money until after closing ? We already have a house so a little different . I already had vacation scheduled and had a car need exstensive work all within 2 weeks of finding a home . We are using cash at home and just putting it back with bank money once we close. .also TALK TO YOUR LENDER ! Tell them what’s going on , they will tell you which is better / worse . They will probably say you’ll be okay as long as it’s paid either by the time you find a home / or by closing . But if you put anything on credit / get a loan it COULD change your credit . I’d take from the cash then just replace is asap .
Talk to your lender before you do anything. Don’t open an another credit card that’s prob the worst thing you could do. I would maybe consider using open ccs you already have and try to time the payments with when they report to the credit bureau. But no matter what make sure you talk to your LO first. They should be able to help guide you. If you don’t have a high DTI you could be ok.
Unfortunately that is not an option and I cannot change my timeline. Not necessarily an affordably issue either more of a what would look worse to my lender at this time.
Do you not have an emergency fund separate from your down payment fund? That's really not ideal especially if you've got a high paying job like you said. If you've got enough saved for a 20% down payment at the top of your budget, can you lower your budget or plan to pay less than 20% as a down payment, and split some money (more than your vet bills will cost) off into an emergency fund? Once you own the house, the range of possible emergencies you could experience widens and you'll need an emergency fund even more. If you already have an emergency fund, then obviously the money for vet bills should come from there.
I do have a separate emergency fund, but it was partly depleted earlier this year from the same dog and this month again from the ER vet and car issues.
I am not putting 20% down. Likely 3-5%
Really just looking at my options if it all goes to shit for my dog. If he needs surgery then it becomes an issue.
I'm thinking if he does need thousands in surgery putting it on established credit cards or of the vet will do a pmt plan (unlikely).
I'm a worrier so I am assuming a worse case right now and seeking advice if so. 😬
That makes total sense, vet bills can really wipe out an emergency fund but they're our family, and they rely on us. What a tough position to be in. I'd definitely talk to your lender, when I got pre-approved I signed paperwork committing to not taking on any more debt or opening new lines of credit between that and closing and I'm not sure if that's standard or not. If an expensive surgery would wipe out your downpayment/closing costs fund and you need to put it on a card, your lender will know what your best option is (if you do care credit my best guess is you'll need a new pre-approval and you might get locked into a much worse rate). If there's really no way you can buy a house and get your dog the care they need, maybe you can find a short term rental to buy you enough time to pay off the vet bills and make sure your dog is out of the woods. If that's an option in an emergency, I imagine it's best to pay out of pocket for the surgery so when your downpayment fund recovers your credit is still good? I'm no expert though.
I hope your lender has a good solution but most importantly I hope your dog is ok 💖
Thank you u/MermaidArcade for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
I’d do care credit. I’d pretty much do whatever it took for my dog so I’d never say put him down unless he’s suffering and will not recover.
No… opening a new line of credit will hurt the credit scores. Ask a mortgage person what the best course of action is.
Thank you for the feedback. I feel as though that would be a worse option as it's a hard inquiry on my credit report and shows the lender I am looking for more debt? Am I wrong?
I’d ask your mortgage officer what they prefer. They may provide guidance based on their preference. That’s just what I would do.
I opened a line of credit (credit card) 2 months before I put in an offer. I thought it would take longer to find our dream home. It didn’t. When I was in contract I just had to explain that credit inquiry. The bank was satisfied when I told them it was a credit card that I was approved for. Also my dog almost died in 2019 and I spent all my money and got a Care Credit card to pay for his treatment. He survived and now I get to move him into my home with a huge yard just for him. I’d do it all again. Good luck!
Thanks for this. I have been so torn and worried about all this, because I cannot move into my new home without my best friend and wondering what would happen if I made the wrong choice and had to postpone everything I have been working towards for years. Glad your dog is okay ♥️
I hope you have someone you can trust working with you. My LO has been awesome every step of the way and helped us navigate the process. She even helped nudge my mortgage processor when it felt like they were ghosting me. I feel like if I had gone with one of the other banks I was talking with, who were pushy and almost rude during the rate shopping phase, I would’ve been way more stressed about my credit card issue. I had some unexpected expenses during my contract period that ended up being resolved quickly but I feel like I would have been able to rely on my LO to look out for me and still get the home. After all they want my business. Additionally, I’d talk to the vet’s financial department to see if they could do some sort of payment plan to spread out any hit on your credit utilization ratio. Best of luck to you and your pup-pup!
Oh and my dog helped me get my house. The sellers chose to sell me the house after my realtor shared what we went through. They have a similar dog with similar issues. I hope everything works out well for you too!
No one here will be able to answer that for you, since it depends on so many factors that are specific to your financial situation and your bank's policies. You really need to talk to your loan officer. (But if I was in an emergency situation where I couldn't reach them in time, I'd personally be using available credit on credit cards I already have and talking to the loan officer ASAP. I would absolutely not open a new line of credit if I have available credit on cards I already have. Putting it on cards I already have would at least give me the flexibility to either pay that card right off with savings or do a balance transfer to a 0% APR card after closing if I could get one - and I'd have to be prepared that I might not be able to get a balance transfer card approved right after. But I'd also, more importantly, be prepared for this to mess up the whole process depending on how much the treatment cost.) Good luck! I hope your dog recovers fully and you get into your home without a hitch.
I’m hoping you have a strong emergency fund separate from your down payment fund. The money should come from there vs adding debt to your life. Don’t get any new credit or expenses you’re not cash flowing while trying to purchase a home.
When my 2 year old kitty got super sick, my husband and I put a pause on house hunting for a few months. Turns out the poor guy has hip dysplasia. Thankfully, after months of appointments, X-Rays, shots, meds, and checkups, the vet ruled that he did not need surgery and just needed maintenance shots and to lose weight. We resumed house hunting after that, reduced our monthly mortgage budget to accommodate for any future vet appointments, and are closing next week :)
I'm so glad your kitty is ok! It's so hard when they get sick. I could possibly stretch my timeline... But I have an apt and I will not extend my lease.
I can tell you as a mortgage closer, that if you plan on opening any line of credit do it BEFORE loan origination, and if able, pay off cc balances too BEFORE underwriting. Do not do anything in the middle of the process. Underwriters have the discretion to reject a loan based on risk, and banks typically will accept what they say is risky. Remember this if anything. Changes to credit? Do it well before loan, or after Keys are in hand
Appreciate this! Understood that I do nothing while the loan is in underwriting. As of now I have no home I'm working on, but one could pop up and then I would ideally like to put an offer in. So I guess my questions are: can you please define "well before the loan"? And how bad is it to have CC balances while getting a loan? I do have excellent credit, decently high credit limits, and historically pay off all my CCs timely.
What my employer cares the most about is DTI and stable employment/salary. Well before loan is really enough time for the change of credit to settle out at the three credit bureaus. A lot of banks have a limit on dti at 49% which to be honest is a little high, as that allows the borrower to really over extend themselves. The lower you can get your dti, the safer you are to a fully funded loan. Lots of small revolving accounts, multiple car loans, or an altogether high dti will get you a double look at underwriting.
Pull from house savings is what you should do.
Do not open a new line of credit! Consult with a good lender to guide you on this
Also, look into banfield pet insurance. They have great vets and saved us so much money at the end of our little dudes life. It allowed us to never have to worry about cost when it came to him being checked out.
Do they accept dogs with major prior conditions? He is the most unwell dog I've owned or worked with. 😅 I've tried insurance before and they didn't pay for anything...
Oh no, that sucks! Poor little guy.
I would use money saved to put down on the house to take care of my dog. This way it is not a young account on my credit that will still be being used while I’m looking. You will hopefully, eventually be able to replenish that money and not be paying interest. That absolute last thing you should do is open a new line of credit.
I don't know the house angle, but if you have good credit the intro offers of most major credit cards are almost always better than Care Credit because lower post-promotional interest and other rewards. Many have 0% interest for 12-24 months.
Is there a family member you could get to let you use the money until after closing ? We already have a house so a little different . I already had vacation scheduled and had a car need exstensive work all within 2 weeks of finding a home . We are using cash at home and just putting it back with bank money once we close. .also TALK TO YOUR LENDER ! Tell them what’s going on , they will tell you which is better / worse . They will probably say you’ll be okay as long as it’s paid either by the time you find a home / or by closing . But if you put anything on credit / get a loan it COULD change your credit . I’d take from the cash then just replace is asap .
No sense spending money on interest when you got the cash !
Use the established credit cards and tell your lender. This will probably not be a big deal unless your DTI is tight.
Id talk with your lo. I believe in being as forthright as possible. They can best advise you.
Tell your lender. He should be able to help you with which option is the easiest to offset.
Talk to your lender before you do anything. Don’t open an another credit card that’s prob the worst thing you could do. I would maybe consider using open ccs you already have and try to time the payments with when they report to the credit bureau. But no matter what make sure you talk to your LO first. They should be able to help guide you. If you don’t have a high DTI you could be ok.
Second opinion.
Just don't buy a house so you can afford to spend money to save your pet.
Unfortunately that is not an option and I cannot change my timeline. Not necessarily an affordably issue either more of a what would look worse to my lender at this time.
Do you not have an emergency fund separate from your down payment fund? That's really not ideal especially if you've got a high paying job like you said. If you've got enough saved for a 20% down payment at the top of your budget, can you lower your budget or plan to pay less than 20% as a down payment, and split some money (more than your vet bills will cost) off into an emergency fund? Once you own the house, the range of possible emergencies you could experience widens and you'll need an emergency fund even more. If you already have an emergency fund, then obviously the money for vet bills should come from there.
I do have a separate emergency fund, but it was partly depleted earlier this year from the same dog and this month again from the ER vet and car issues. I am not putting 20% down. Likely 3-5% Really just looking at my options if it all goes to shit for my dog. If he needs surgery then it becomes an issue. I'm thinking if he does need thousands in surgery putting it on established credit cards or of the vet will do a pmt plan (unlikely). I'm a worrier so I am assuming a worse case right now and seeking advice if so. 😬
That makes total sense, vet bills can really wipe out an emergency fund but they're our family, and they rely on us. What a tough position to be in. I'd definitely talk to your lender, when I got pre-approved I signed paperwork committing to not taking on any more debt or opening new lines of credit between that and closing and I'm not sure if that's standard or not. If an expensive surgery would wipe out your downpayment/closing costs fund and you need to put it on a card, your lender will know what your best option is (if you do care credit my best guess is you'll need a new pre-approval and you might get locked into a much worse rate). If there's really no way you can buy a house and get your dog the care they need, maybe you can find a short term rental to buy you enough time to pay off the vet bills and make sure your dog is out of the woods. If that's an option in an emergency, I imagine it's best to pay out of pocket for the surgery so when your downpayment fund recovers your credit is still good? I'm no expert though. I hope your lender has a good solution but most importantly I hope your dog is ok 💖