I am a longtime U.S. federal employee, and I will be returning to America after five years serving overseas.\u00a0I hope to buy a house, and currently have nearly no debt and a high credit score.\u00a0<\/p>\n
When I return to the U.S., I will have to buy a car or two, and do all of the things associated with moving to a new place, and I know that oftentimes credit checks are part of the various things that need to happen.<\/p>\n
If I get a mortgage, how should I handle doing all the other things associated with setting up in a new state \u2014 without hurting my score and chance for the best rate on a mortgage?<\/p>\n
Going home\u00a0<\/p>\n
\u2018<\/em><\/strong>The Big Move<\/em><\/strong>\u2019 is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.<\/em><\/strong><\/p>\n Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Aarthi Swaminathan at <\/em><\/strong>TheBigMove@marketwatch.com<\/em><\/strong>.<\/em><\/strong><\/p>\n Kudos to you for thinking deeply about this, rather than trying to do things on the fly. Your credit score reflects your ability to pay back your debts, so it\u2019s a smart move to prepare all the potential ways you can ensure it\u2019s high, so you pay the lowest rates possible.<\/p>\n Yes, applying for new credit on multiple loans could theoretically hurt your credit score. \u201cGenerally, when you apply for credit, a new application will result in a hard inquiry, which can have a temporary, negative impact on your credit score,\u201d Margaret Poe, head of consumer credit education at TransUnion, one of the three big credit bureaus, told MarketWatch.\u00a0<\/p>\n But that doesn\u2019t mean your score will necessarily fall significantly: \u201cIf you\u2019re shopping for one type of loan product, like a car loan, credit-scoring models will \u2018bunch\u2019 those multiple applications into a single hard inquiry as long as those applications are made within a short time frame,\u201d she added.<\/p>\n \u201cIt depends on the credit-scoring model, but the time frame can be as short as two weeks and as long as a month, so try to shop for loans within two weeks to be safe,\u201d Poe said. \u201cThis should limit the negative credit score impact as you start your home buying process.\u201d<\/p>\n But when it comes to your mortgage, your strategy would depend on what your lender says. \u201cYour finances will be under more scrutiny than with a car,\u201d Poe noted.\u00a0<\/p>\n You don\u2019t have to stop applying for credit when you\u2019re buying a house, but your broker may suggest it if they think it will hurt your application. <\/p>\n \u201cAt best, new credit applications may require you to write a statement describing why you applied for new credit to the loan underwriters,\u201d Poe said. <\/p>\n \u201cAt worst, the new credit could signal you\u2019re taking on additional debt, have a credit-score impact, and may result in a change in your loan terms, like a higher interest rate,\u201d she added. \u201cBecause of this, putting a pause on new credit applications, in the months prior and during the home buying process, is a smart choice.\u201d<\/p>\n Since you\u2019re likely in the clear with no debt and a high credit score, you are more likely to get approved for loans, and also get good terms, Poe said.\u00a0<\/p>\n One way you can get a lower rate is to shop around. Particularly with mortgages, which are high-stakes dollar amounts, if you go to multiple lenders and get four different quotes, you could save over $1,200 per year, according to Freddie Mac Critically, make sure your credit score is accurate, and that no fraudster has opened a new line of credit when you were overseas and damaged your score.\u00a0<\/p>\n \u201cMake sure you recognize all the accounts and that everything is accurate,\u201d Poe said.<\/p>\n If you do spot a new credit-card or medical debt that is most definitely not yours, for instance, act fast. Call the lender first if you\u2019re not sure why you owe them money. If it is indeed wrong, you can dispute it for free with the three credit bureaus.\u00a0<\/p>\n \u201cDisputes generally take 30 days to resolve,\u201d Poe advised. \u201cReviewing your credit report well ahead of major purchases ensures there are no surprises \u2014 you can shop for your home and car and the accompanying loans with confidence.\u201d<\/p>\nDear Going,\u00a0<\/strong><\/h2>\n
Finances under scrutiny<\/h2>\n
\n FMCC,
\n Check for identity theft<\/h2>\n