Buying Frederick Real Estate and the many concerns to consider, don't end at the contract ratification. Between the time your offer on a home is ratified, becoming a contract, and the time you go to close on the home, this is the time your loan is in process. You should not do anything that will have an adverse affect on your credit score.
Some things you should be aware of have an adverse effect on your loan process:
- Don’t apply for new credit of any kind. No credit cards or lines of credit. No new car loans. Nada.
- Don’t pay off collections or charge-offs, unless your lender asks you to. This is a hard one for people to accept. Generally, paying off old collections causes a drop in your credit score. When you do, it brings that particular account from the past to the forefront of your credit. In most cases, it counts as less of a negative, the older it is.
- Don’t close credit card accounts. If you close an account, it will affect your ratio of debt to available credit which has to be under a certain ratio. This accounts for 30% of your credit score. If you really want to close an account, do it after you close on your home.
- Don’t max out or over charge existing credit cards. Running up your credit cards is the fastest way to bring your score down; it can drop up to 100 points overnight. You should try to keep your credit cards to below 30% of the available credit limit.
- Don’t consolidate debt to one or two cards. Again, you don’t want to change your ratio of debt to available credit. You also want to keep your good credit history on the books.
- Don’t raise red flags to the underwriter. Don’t co-sign on another person’s loan, or change your name or address. The less activity that occurs while your loan is in process… the better.
- Speak to your lender about all your concerns. For a list of preferred lenders in Frederick, contact us.
- Speak to your lender about all your concerns. For a list of preferred lenders in Frederick, contact us.
Turning Point Real Estate
8923 Fingerboard Road
Frederick, Md 21704
301-831-9947
isell4u2@msn.com
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