QUALIFYING CREDIT DO's & DON'Ts
STAY CURRENT ON ALL EXISTING ACCOUNTS
Late payments on your existing mortgage, car payment, rent or anything else that can be reported to a credit reporting agency can cost you dearly. One 30-day late payment can cost you 30-75 points on your credit score.
APPLY FOR NEW CREDIT OF ANY KIND
You will receive invitations to apply for new lines of credit. Do not respond. If you do, the company will pull your credit report and this could have an adverse effect on your credit score. Likewise, don’t establish new lines of credit for furniture, appliances, computers, fences, etc.
CONTINUE TO USE YOUR CREDIT AS YOU NORMALLY WOULD
The scoring system raises red flags very readily. Any appearance of deviation from normal spending patterns could lower your score. If you've used the same credit card for the past three years to pay your monthly Internet bill, for example, this isn't a good time to change that.
CLOSE CREDIT CARD ACCOUNTS
If you close a credit card account, it can affect your ratio of debt to available credit, which has a 30% impact on your credit score.
CALL YOUR LOAN ORIGINATOR
If you receive notification from a collection agency or creditor that could potentially have an adverse effect on your credit score, call me so we can try to direct you to the right resources and prevent any negative reporting to credit bureaus.
CHANGE ANYTHING ABOUT YOUR CURRENT EMPLOYMENT
Changing jobs, being laid off or taking medical leave can adversely affect your mortgage. Lenders verify your employment on the day of closing. If your employment status changes, please consult your loan originator right away.