Credit Do’s and Don’ts

Did you know your lender is required to pull your credit score right before closing?  That’s right and a drop in your credit score could stop you from getting full loan approval.  And without full loan approval you will not be closing and you will not be moving into that fabulous house in Spring Texas.

During the loan process follow these Credit Do’s and Don’ts:

Do’s:

  • good credit vs bad creditDo call your loan officer before making any decisions regarding your credit. What sounds like a logical financial move to you could negatively impact your credit score.  Don’t take unnecessary risks. Call your lender first.
  • Do continue to use your credit as normal.  If it appears you are changing your patterns, it could create a red flag and your score could go down.

Don’ts:

  • Don’t apply for new credit. New house means new furniture, new fridge, new washer & dryer, and new credit. Every time you have your credit pulled your score can go down. Wait until after you close on your Spring Texas house before applying for any new credit.
  • Don’t close credit card accounts. Closing a credit card account makes it appear that your debit ratio has increased and it impacts your credit history.
  • Don’t max out your credit cards. Keep your credit cards at below 80% of your credit limit.  If you are paying down cards, do so across the board.
  • Don’t consolidate your debt.  When you consolidate your debt onto one or two credit cards it appears you are “maxed out” on that credit card and down your score goes.

If you need the name of a good local Spring Texas lender, give us a call at 281.804.8626 or 281.300.3141.  We would be happy to refer you to a couple of lenders with aggressive rates and who close their loans on time.

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