Top Credit Dos and Don’ts During the Loan Process

Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has created even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.

- DO continue making your mortgage or rent payments - DO stay current on all existing accounts
- DO keep working at your current employer
- DO keep your same insurance company
- DO call us if you have any questions
- DON’T make a major purchase (cars, boats, jewelry, appliances, etc.)
- DON’T apply for new credit (even if you see “pre-approved”)
- DON’T open a new credit card
- DON’T transfer any balances from once account to another
- DON’T pay off charge offs or collections without a discussion with your lender first
- DON’T buy any furniture on credit
- DON’T close any credit card accounts
- DON’T change bank accounts
- DON’T max out or over charge on your credit card accounts
- DON’T consolidate your debt onto 1 or 2 credit cards
- DON’T take out a new loan
- DON’T finance any elective medical procedures
- DON’T payoff any loans or credit cards without discussing it with your lender first.
- DON'T loose contact with you mortgage broker and your real estate agent.
There are any number of things that could make your “pre-approved” mortgage become a “denied” mortgage. Don’t let this happen to you!