Keeping your credit score healthy before you close on your home

When buying a house don’t assume everything is done until your home has closed and funded. Maybe your loan has got an approval from the underwriter, or documents have been sent to the title company to close. Regardless of where you are at with the closing of your new home there are some definite PRECAUTIONS one must take when buying a home. During my career as a lender I have had all sorts of stuff happen because the borrower did not listen to what I said. Here are some things you don’t do before your loan funds.

Avoid the following before closing and funding on your new home loan.
• Co-signing on any loan
• Charging furniture or anything for your new home on your credit cards
• Opening new credit lines with credit card companies.
• Being late on any obligation
• Quitting your job

There is nothing more humiliating than being at the closing table and finding out after all the work and the cost associated with buying a home you are now denied. When buying a home in today’s market most lenders will re-pull your credit at the last moment to make sure nothing has changed.

With this being said make sure you don’t do any of what has been mentioned. Also if you credit score drops for some reason this is a reason for the lender to increase your interest rate on you. You don’t want to go to closing and have any surprises.

With the current strict guidelines on mortgage loans you want to make sure you don’t drop your credit scores. The credit score bar has been raised. Most lenders on a 30 year fixed conventional loan want your middle fico score to be a minimum of a 680 fico score. At one point in time this credit score was great, but not anymore. With this type of score you will pay a higher interest rate. This type of credit score is now considered higher risk to lenders based on past performing loans.

What type of credit scores are lenders looking for? Currently to get the best rates and terms you need to have at least a 720 or above credit score. So if you are not sure you might consider getting a copy of your credit report today.

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.