During the Loan Process you will be asked a lot of questions, and a credit check is required. But don’t let this scare you! Many people are unsure about the process you go through to buy a home. It is not a scary process at all, but there are some do’s and don’ts you need to be aware of to keep your credit in good standing.

DO Stay Current On Existing Accounts: One 30-day notice can cost you.

DO Continue To Use Your Credit As Normal: Changing your pattern will raise a red flag and lower your credit score.

DO Call Your Mortgage Professional before you make any address or credit changes.

DON’T Apply For New Credit: Every time you have your credit pulled by a potential creditor or lender, you can lose points from you credit score. This also includes co-signing for a loan.

DON’T Max Out Credit Cards: Try to keep your credit card balances 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 combine all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.

DON’T Close Credit Card Accounts: If you close a credit card account, it may seem that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.

DON’T Pay Off Collections Or “Charge Offs”: If you want to pay them off, do it through escrow at closing.

Costs for First Time Buyers