Protect Your Mortgage Pre-approval

Following these tips could be your key to a great home loan with low rates and fees.

Do

Do stay current on existing accounts.
One 30-day late notice can compromise your ability to be approved.

Do continue to use your credit as normal.
Changing your pattem will raise a red flag and can lower your credit score.

Do call your mortgage loan professional first.
If you have any questions or concerns, always contact your mortgage professional.

Don't

Don't apply for new credit.
Every time you have your credit pulled by a potential creditor or lender, you will lose points from your credit score. This includes co-signing for a loan or applying for new credit.

Don't max out credit cards.
Do not use more than 30% of your available credit limit during the loan process. If you pay down balances, do it across the board.

Don't consolidate your debt.
When you consolidate all of your debt onto one or two credit cards, it will appear that you are "maxed out" on that card, and your credit scores will suffer.

Don't payoff collections or "charge-offs."
If you want to pay them off, do it through escrow at closing.

Don't transfer money between accounts.
Unless receiving complete documentation from your bank itemizing all transfers, don't transfer money.

Don't withdraw or deposit large sums of money.
Unless absolutely necessary, don't withdraw or deposit large sums into your checking or savings accounts.

Don't make career moves.
Don't change jobs while obtaining mortgage financing. Should an opportunity arise, discuss the details with your mortgage professional.

Don't let bank accounts go in the red.
Any accounts with insufficient funds cannot be used. Be sure to keep all accounts in good standing. 

Don't have a friend of relative pay for anything related to the purchase of the home.
Gifts are only allowed under specific lending guidelines and must be documented. This includes your appraisal, earnest money, down payment, etc.

Don't keep your cash in a safe or overseas account.
If you plan to use these funds as a down payment, inquire about how and when would be the best time to put funds into your U.S. bank account if needed.

Don't give your personal information to anyone else who might run your credit report.
Be protective of your credit while purchasing or refinancing your home. Additional credit inquiries will hurt your credit scores.



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