Credit – What to Expect During the Loan Process

Credit – What to Expect During the Loan Process

Good credit is critical when it comes to obtaining the best interest rates and terms on a mortgage.  Here are some credit tips when applying for a mortgage.

Expect To:

  • Stay current: On existing accounts, one 30 Day notice can cost you
  • Continue to use your credit as normal: Changing your patter will raise a red flag and may potentially lower your credit score
  • Call your mortgage professional: Before making any address or credit changes, check in with your contract below.

Try to avoid:

  • Applying for new credit: Every time you have your credit report pulled by a potential creditor or lender, it may potentially impact your credit score.  This includes co-signing for a loan
  • Maxing out credit cards: Try to keep your credit card balances 30% below their limit during the loan process
  • Paying off collections or charge offs: If you want to pay off old acconts, do it through escrow.  Obtain a confirmation letter from your creditor when paying off accounts.
  • Consolidating your debt.

 

Credit – What to Expect During the Loan Process

Credit – What to Expect During the Loan Process

 

Call me for more questions on what to expect during the loan process.