When buying a home, there are a number of things you should
do to make sure you get the financing you need. Just as important, there are a number of things you shoudn’t do to make sure your financing doesn’t get sacrificed. Here are just a few:
Do stay current on all accounts
A 30 day delinquency can affect your credit by up to 75
points It is super important to make
sure your credit shows a history of regular, on time payments.
Do use your credit as normal.
Lenders like seeing normal spending patterns…don’t focus so
much on paying things off, closing accounts(a HUGE no-no) etc. Business as normal please!
Do stay in touch with your lender
Any new developments, any questions or concerns, whether
positive or negative, should be discussed with your lender. No surprises!
Do not apply for any new credit
Not only does this negatively affect your credit in more
ways than one, but it also raises a number of red flags for your lender. Keep the hurdles out of the way.
Do not close any accounts
Again…business as normal. If you close any accounts, it most likely will affect your DTI(debt to
income) DTAC(Debt to available credit) and length of account history, all three
causing harm to your overall score.
Do not lend money, co-sign, etc
If you loan money out to a friend or family member, guess
what? You just threw your chances of
getting approved for a loan. If you co-signed
on a loan for someone else in need, you just opened a new account, had your
credit check, and most likely costed yourself your home.
There are so many more things we can go over, but here are
just a few. For more tips, click here,
and let’s chat!