November 13, 2023

Don’t Mess With Your Credit

You have been dreaming about owning your own home for years and now that you have found the perfect home, don’t lose it by messing with your credit. Closing on a home from beginning to end is a complicated process and can take up to 60 days depending on the situation. During this time, there are things to avoid doing so that your closing is seamless.

When you apply for a mortgage pre-approval your lender will pull your credit and then they will also do it again right before closing. Here are a few tips to maintain your credit.

Do not open new lines of credit. When you open a new line of credit such as a credit card, the lender will view you as riskier since you are acquiring more debt. Your credit score may actually lower as well when you open a new line of credit. Both of these outcomes could result in you not getting your final approval for the mortgage.

Do not make large purchases on your credit cards. We know that you are excited about your new home and want to buy that cozy new sectional and large screen TV for your family room, but please hold off on this purchase until after your closing. Taking on more debt could lower your credit score and put you in jeopardy of losing your mortgage.

Don’t quit or change jobs. Lenders will verify your employment and income during the underwriting process to ensure you have the funds and stability to make your monthly mortgage payments. If you leave your job, this could slow down the process and your closing could get delayed. If your income in your new job is far less than your previous one, the lender may determine that you do not qualify for the mortgage.

Pay your bills on time. Buying a new home can be stressful and there are a lot of things on your to-do list. Don’t forget to pay your current bills on time. If you miss any payments, your credit score could go down which will affect your chance of getting a mortgage. If you haven’t done so already, put your bills on autopay so there is no chance of missing a payment.

Keep your credit in check and make sure you monitor your score frequently. You are in control of your finances and credit so you can do your part to keep your closing on track.

By: Jon Iacono
A Family

Advisors is a multi-state mortgage banker that believes in delivering a seamless, stress-free mortgage experience to all of our customers.

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