So, what are ways you can ensure you have a smooth ride into your closing date? Here are the do’s and dont’s during the loan process:
- DO stay current on existing accounts
- One 30-day notice can cost you.
- DO continue to use your credit as normal
- If it appears you are changing your pattern, it will raise a red flag and your score could go down.
- DO call your Loan Officer before making changes
- Call before making any address or credit changes that may affect your scores.
- DON’T apply for new credit
- Every time you have your credit pulled by a credit card, store card, and/or installment debt… getting 10% off or buying furniture for a home you do not own can cost you your loan and your home. This includes co-signing for a loan.
- DON’T close credit card accounts
- If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history. Keep balances low, but don’t pay off accounts. Paying off accounts could negatively affect your score as it appears you lose that trade-line.
- DON’T max out or over-charge credit card accounts
- Try to keep your credit card balances 30% below their limit during the loan process. If you pay down balances, do it across the board.
- DON’T consolidate your debt
- When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.
- DON’T deposit any un-sourceable cash into your bank accounts
- Keep transfers between accounts to a minimum as well.
- DON’T take cash advances from credit cards
- DON’T change your employment
- Although it may not affect your credit score, changing your employment can affect your ability to qualify for a loan! Do NOT go on leave either. We can’t close your loan if you aren’t working!
MORTGAGE LOAN ORIGINATOR
O: (407)636-8557 x208