I just got the good news that we are pre-approved for “whatever we want” in the words of our loan officer. “Whatever we want” means a comfortable range up to about $ 250,000 in the Savannah, Georgia area. We’re aiming to be around $ 175,000 at this time. We have only just started to look at houses and aren’t close to making an offer yet, though we need to be ready since good homes go fast in the market here.
My spouse’s middle mortgage score came in above 680, but mine is at 664 (funny because I got a 16 point Equifax FICO 8 increase up to 713 today when the mortgage inquiry hit!). Of course I want to get to 680 for the interest rate drop. When the loan officer read back the suggestions for how to increase points, the credit anaylsis simulator’s suggested action was to have my spouse remove me as an AU from a Capital One card account with a $ 2200 CL and a zero balance. I’m very reluctant to do that. Even he was surprised that the simulator would suggest that. The thing is I’m not sure the numbers that were pulled today from Equifax are correct – he stated my Old Navy card balance as $ 253 but I had paid that off almost a month ago when I paid off all of our credit cards. Perhaps the Capital One card was still showing a balance, too. He suggested I go ahead and remove myself as an AU and add it back later after we close on a house.
My questions are: Does this make any sense? Should I remove myself as an AU on a card with $ 2200 limit and a zero balance? Won’t that hurt my overall credit picture? Or should I be patient and wait out the slow credit increases over the next few weeks as credit bureaus receive updates of zero balances from our credit cards and hope I make it to 680 by the time we do get to the point of locking in a rate?