The Do's and Dont's During the Home Loan Process

When starting the pre-approval process you should not do anything that will have an adverse effect on your loan from this point through your closing date. It may be tempting to start opening credit cards for furniture and other miscellaneous items, but this is the time to keep your financial future frozen and in a stable position until your loan closes. The slightest mistake can cost you thousands of dollars or the ability to obtain financing. In order for your pre approval to remain valid through the process, follow these easy steps: DO’s: • Stay current on your existing accounts. Any late payments (existing mortgage, cars, credit cards or anything else) on your credit will cost you dearly and can even keep you from getting financing. • Keep using your credit as you normally would. Now is not the time to start changing any patterns to your normal spending. This means if you normally use a certain credit card then you need to keep using it and not divert payments to another card. • Contact your mortgage expert. It’s best to contact someone who is up to date and currently in the mortgage field if you have any questions or concerns before and during the loan approval. Contact Steve Head 281-907-6401 ext. 100 at Texas Premier Mortgage at any time for more information. Don’t’s: • Don’t make any change to your employment. Quitting of changing jobs even within the same company can wreck your entire loan approval. • Don’t pay off collections or charge off accounts. This will usually result in a lower credit score for you. Do not do this unless you are told to do so by a mortgage expert. • Don’t make any adjustments or transfers in your assets. This is a BIG red flag to an underwriter. Any big deposit will be questioned. • Don’t over charge or max out existing credit cards. This is a quick way for your credit scores to drop. You want to keep a balance below 30% of the available limit. • Don’t consolidate your debt to one or two credit cards. Again, this could put you over the 30% threshold which will affect your credit scores. • Don’t close credit card accounts. This can affect your ratio of debt to available credit which has a big impact on your credit scores. It is best to close any accounts after your loan is closed.