Is it bad if I open a new card while I'm house hunting?

Is it bad to open a new card while house hunting?

You're wondering if opening a new credit card during your home search could hurt your mortgage approval. Opening new credit accounts while house hunting can affect your mortgage application because lenders check your credit multiple times during the process.

New credit inquiries typically lower your credit score by a few points temporarily, and new accounts reduce your average account age. Lenders also watch for changes in your debt-to-income ratio. A new card increases your available credit, but any spending on that card adds to your monthly debt payments.

Most lenders run a final credit check shortly before closing. If your credit profile looks different from when you first applied, the lender may ask for explanations or potentially reconsider your loan terms. Check with your loan officer before opening any new accounts. They can walk you through how a new card might affect your specific situation and timeline. Some lenders recommend waiting until after closing to open new credit accounts, while others may approve it depending on your credit strength and the loan program.