Lenders will update credit prior to closing!
Good credit is critical when it comes to obtaining the best interest rates and tea on a mortgage. Here are some credit dc and don'ts when looking for a mortgage DON'T change your financial picture after you close. Call your mortgage professional when in doubt!
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 pattern, it will raise a red flag and your score could go down.
Do Call Your Loan Officer Below.
Cali before making any address or credit change that may affect your score.
Don't Apply For New Credit.
Every time you have your credit pulled by a potential or lender, you can lose points from your credit score. This includes co-signing for a loan.
Don't Pay Off Collections Or Charge-Offs.
If you want to pay off old accounts through escrow. Request a letter of deletion from the creditor.
Don't Close Credit Card Accounts.
If you close a credit card account, it may apply your debt ratio has gone up. Closing a card will affect other factors in the score, including cret history.
Don't Max Out Or Over Charge Credit Cards.
Try to keep your credit card 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 t credit cards, it will appear that you are maxed out on that card and you will be penalized.
NO MAJOR PURCHASES, Cars, Boats, etc.