Eight Credit Do’s and Don’ts During the Loan Process

Good credit is critical when it comes to obtaining the best interest rates and terms on a mortgage.


Eight Credit Do’s and Don’ts During the Loan Process

Here are some credit do's and don'ts to keep in mind when looking for a mortgage loan.

  1. Do Stay Current On Existing Accounts – One 30-day notice can hurt you.
  2. Do Continue To Use Your Credit As Normal – Changing your pattern will raise a red flag and lower your credit score.
  3. Do Call Your Mortgage Professional – Rely on your Mortgage Professional with questions and before making any address or credit changes.
  4. Don't Apply For New Credit – Every time you have your credit pulled by a potential creditor or lender, you can lose points from your credit score. This includes co-signing for a loan.
  5. Don't Close Credit Card Accounts – If you close a credit card account, it may appear that your debt ratio has gone up. Closing a card will affect other factors in the score, including credit history.
  6. 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.
  7. Don't Pay Off Collections Or “Charge-Offs” – If you want to pay off old accounts, do it through escrow. Request a “letter of deletion” from the creditor. 
  8. 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 you will be penalized. 
We are here to help. Please contact a North Shore Bank Mortgage Loan Professional near you who has the experience and know-how to keep you on track and ready when you find your dream home.

This is not an offer of credit or commitment to lend. Loans are subject to buyer/property qualification. Rates/fees are subject to change without notice. Cash reserves may be required for some conventional loans. Please contact a Loan Originator to discuss your specific situation. Pre-approval is not guaranteed and may require additional information. Member FDIC.

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