How is my credit score affected after I get approved for a mortgage?

Question

I have been paying for my new mortgage for 2 months now, and noticed that my credit score went down more than 50 points since the mortgage loan appeared on my report. Why is that???

Answer 1

It's simply because of the new debt you took on, after about 12 months of paid as agreed your score will be higher then it was to begin with.

And by the way, debt to income has NOTHING to do with credit score debt to credit doe's however make up a full 30% fo your score.

Answer 2

If your credit score wasn't that high to begin with, then expect it to lower after approval and accepting the loan.  Since mortgage loans are typically more than 100,000 that is a big hit to your debt to income ratio.

Answer 3

Because you have taken on new debt and the debt to income ratio is out of whack. Wait at least 6-8 months, maybe even a year of making on time payments before you expect to see that number go up.