Credit Do's & Don'ts 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 do’s and don’ts to keep in mind.

  • Do Stay Current on Existing Accounts
    One 30-day notice can cost you.
  • Do Continue to Use Your Credit as Normal
    Changing your pattern will raise a red flag and lower your credit score.
  • Do Call Your Mortgage and Real Estate Professional
    Before making any address or credit changes.
  • Don’t Apply For New Credit
    Every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.
  • Don’t Max Out Credit Cards
    Try to keep your credit card balances below 30% of their limit during the loan process. If you pay down balances, do it across the board.
  • 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.
  • Don’t Pay Off Collections Or “Charge-Offs”
    If you want to pay off old accounts, do it through escrow. Request a “letter of deletion” from the creditor.
  • 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.


For more information please fill out the form or call one of our loan specialists at (888) 329-8518

No Fields Found.