While you are considering the purchase of your home, you should not do anything that will have an adverse affect on your credit score or employment while your loan is in process. We know it can be tempting to purchase new appliances or furniture for your future home, but this is not the right time to be shopping with your credit cards. You will want to remain in a stable position until the loan closes, which will help your loan originator help close your loan as smoothly as possible.

Don't Apply for New Credit of Any Kind

You will receive invitations to apply for new lines of credit–do not respond. If you do, the company will pull your credit report, and this could have an adverse effect on your credit score. Likewise, do not establish new lines of credit for furniture, appliances, computers, fences, etc.

Don't Pay off Collections or Charge Offs

Once your loan application has been submitted, don't pay off collections unless the lender specifically asks you to in order to secure your loan. Often times, paying off old collections will cause a drop in your credit score.

Don't Close Credit Card Accounts

If you close a credit card account, it can affect your total available credit, which has an impact on your credit score. If you really want to close an account, do it after you close on your mortgage.

Don't Max Out or Over Charge Existing Credit Cards

Running up your credit cards is the fastest way to bring your score down, and it could drop up to 100 points overnight. Once you are engaged in the loan process, try to keep your credit cards below 50% of the available credit limit.

Don't Consolidate Debt to One or Two Cards

Once again, we do not want you to change your total available credit. Likewise, you want to keep beneficial credit history on the books.

Don't Raise Red Flags to the Underwriter

Don't co-sign on another person's loans or change your name or address. The less activity that occurs while your loan is in process, the better it is for you.

Don't Change Anything About Your Current Employment

Changing jobs, being laid-off, or taking medical leave can adversely affect your mortgage. Lenders verify your employment on the day of closing. If your employment status changes, please consult your loan originator right away.

Do Stay Current on All Existing Accounts

Late payments on your existing mortgage, car payment, rent, or anything else that can be reported to a credit agency can cost you dearly. One 30 day late payment can cost you 30-75 points on your credit score.

Do Continue to Use Your Credit As You Normally Would

Red flags are easily raised within the scoring system. If it appears you are diverting from your normal spending patterns, it could cause your score to go down. For example, if you've had a monthly service for internet access billed to the same credit card for the past three years.

Don't Deposit Large Sums of Cash

Do not deposit large sums of cash into your accounts unless you can provide documentation and a complete paper trail. If you have any deposits that are not related to payroll, tell your loan originator right away.

Do Call Your Loan Originator

If you receive notification from a collection agency or creditor that could potentially have an adverse effect on your credit score, call your loan originator so they can try and direct you to the right resources and prevent any derogatory reporting to credit bureaus.

The AnnieMac Promise

AnnieMac Home Mortgage strives to offer the best service for our borrowers and are here to help you achieve your goal of homeownership.