Ok, you found your dream home and have a
contract on it, got approved for the loan, waiting to close the
deal. You are happy and believe you will own the house shortly and
nothing can ruin your dream. Correct? Not Quiet, read the rest:
As you know it usually takes 30-60 days or more
after initially you were approved by lender to close the deal.
During this time many things could happen that changes your
qualification, eligibility and/or credit score.
This is very important to know that lenders
will run your credit reports a few days prior and up to closing
date. Depending on the changes in your credit reports; they may
deny, require new application, or do nothing. For example, if during
this 30-60 days you lose your job, it is obvious that you will not
get the loan. Therefore, it is very important that you don’t lose
or changed your job with lower pay, don’t get negative information
in your credit reports, don’t get involve in law and law suit, etc.
As a suggestion, follow these Do’s and Don’ts
recommendations:
DO’S:
·
Pay and continue to pay all your bills (at least the “Minimum
Payment” on Credit Cards) and loans on / or before the due time.
·
Look at each credit card’s Balance/(Line of Credit) ratio and pay as
much as possible to reduce the unpaid balance to a point the that
ratio becomes less that 30%.
·
Have a good cushion of available credit between your current balance
and your credit limits on all open trades
·
Time-by-time, request a soft credit line increase. Typically,
creditors can increase your line of credit a couple of hundreds or
thousand dollars without running your credit report, if you have a
good record or relationship with them for a year or so.
·
Use (charge at least some amounts) all your credit cards including
those that you usually don’t use every month. And off course pay
them on time.
·
Pay off smaller debts.
·
DON’T’S
·
Don’t be tempted to open a store charge card to receive discounts.
·
Don’t apply or accept any new Credit Card
·
Don’t apply “Hard” Line of Credit Increase.
·
Don’t apply for a new loan.
·
Don’t Allow anybody run your credit report,
·
Don’t Close any of your Credit Cards
·
Don’t purchase a major item and charge Credit Cards
·
Don’t let the ratio of Amount Owed to Credit Line be greater than
30% for each card.
·
Don’t be late paying your payments or obligations
·
Don’t Change or Quit your Job.
·
Pray not to get lay off, or at least try to see you can stay at your
current job until after closing!
·
Don’t get involved in a law suit, accidents that might cause of law
suits
·
Don’t file for Bankruptcy, foreclosure, short sale, etc.
·
Do not place “dispute” in your credit report. This causes more delay
for approving a loan and could cause a higher interest rate.
