Do's and Dont's with Your Credit During the

Home-Buying Process

When buying your next home, changes to your credit (additional accounts, closing accounts, fluctuating credit card balances) can result in the lowering of your credit score. If your credit score changes, that can affect your interest rate and even the loan approval itself. Therefore, it is imperative that there are no major changes to your credit and information provided, during this process.

In order for your loan to reach final approval and fund, you'll want to adhere to the following:

1.      DO NOT charge any new items on your charge cards (higher balances will lower credit scores).

2.      DO NOT apply for any new charge cards or loans (new credit trade lines and credit inquiries can lower credit scores).

3.      DO NOT buy or lease any new major purchases – especially cars, furniture, appliances, etc… (even "no interest" loans, as they appear as new credit trade lines and will affect your debt to income ratio).

4.      DO NOT co-sign for anyone's loans for any reason.

5.      DO NOT allow anyone to check your credit unless in the shopping process and even then, know the consequences (each inquiry may lower your credit score).

6.      DO NOT change employment may result in loan denial.

7.      DO NOT start any new remodeling jobs.

BUT....

8.      DO continue to make all payments on time

A new credit report will be pulled before closing to make sure no new credit has been established and any inquiries will have to be verified to that effect. Following these simple rules, will ensure a stress-free loan process from the standpoint of your credit report.