Applying for a first time home buyer loan isn’t just about appraisals and choosing the right financing program
It’s also about your lender looking at and verifying your credit profile. Did you know that any changes to your credit profile during the loan process can have negative ramifications?
A Quick Guide to Maintaining Your Credit Profile and Scoring the Loan You Want
Here are a few tips and tricks I’ve put together that can help you save yourself a headache or two during the loan process.
Related: 5 Secret Stats to make you a smarter first time home buyer
- Stay on top of paying off your existing credit accounts. One late payment can jeopardize your qualification for a home loan.
- Continue to use your credit as normal. If you change the way you use credit, it could actually lower your credit score.
Call your first time home buyer specialist if you have questions.
- Don’t apply for new credit. New credit obligations can impact your debt profile and jeopardize your qualification.
- Don’t close credit card accounts unless your financial advisor tells you it would be beneficial.
- Don’t max out or over-charge credit cards. Keeping credit card balances at least 10 percent below the maximum should help you maintain your current credit score.
Related: 4 Steps to a Quicker Close
Here a few other things to keep in mind during the home loan process.
Job changes can significantly affect your loan. If you have a change in income or employment, notify your loan officer immediately.
Related: Don't go from Approved to Not Approved
Don’t move your money around. After your funds have been verified at one or more institutions, the money should remain in place until the loan process is done.
Avoid Large Purchases. A home loan should be a big enough purchase in itself, but keep in mind that a large purchase that requires withdrawal from verified funds or increases your debt can hurt your ability to get a home loan.
We have helped countless first time home buyers find the right home and the right loan. They all have one thing in common, they contacted us.
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