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Tips to Help Keep Your Credit In The Green When Applying for a Loan


Buying a house and getting a loan can be complicated so it's important be prepared. Here are some tips to help you protect your credit score:

DO'S

  • DO make sure to get help from a mortgage professional.

  • DO check with your lender before accepting gifts or loans from friends or family. There may be restrictions on what you can do and you don't want to jeopardize your loan opportunity. .

  • DO stay current on existing accounts: Make sure you make all your payments on time.

  • DO maintain a consistent spending pattern while you are waiting for a loan approval. Pattern changes can be seen as a red flag and can lower your credit score.

  • DO check your credit score. You are allowed to order one free credit report each year

DON"TS

  • DON’T apply for new credit when you are about to buy a home or refinance. You lose points from your credit score every time your credit is pulled by a creditor or lender.

  • DON'T close any credit card accounts because it can also negatively impact your credit history.

  • DON'T transfer money between accounts unless your bank has sent you complete documentation itemizing all transfers. Keep your accounts in good standing.

  • DON’T make any big purchases: No cars, boats, jet skis, solar systems etc...

  • DON"T max out your credit cards or withdraw or deposit large sums of money.

  • DON'T consolidate debt onto one or two credit cards during the loan application time

  • DON’T change your job. Interruption in pay checks is never a good thing. The underwriter has to review current paystubs when verifying income.

Source: Guaranteed Rate -Protect Your Pre-Approval

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