Advice

Tips for homebuyers between contract and closing

Recently I attended an education conference for Oklahoma REALTORS®, and one of the sessions featured a panel of experts in affiliated branches of the real estate industry.

I had the opportunity to visit with Constance Ladd of Oklahoma’s Credit Union about some tips homebuyers obtaining financing should NOT do between contract and close.

Here are some Credit Dos and Don’ts

DODON'T
DO stay current on existing accounts.
One 30-day late notice can cost you.
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.
DO continue to use your credit as normal.
Changing your pattern will raise a red flag and lower your credit score.
DON'T max out credit cards.
Keep your credit card balances 30% below their limit during the loan process. If you pay down balances, do it across the board.
DO call your mortgage loan officer first
before making any address or credit changes.
DON'T consolidate your debt.
When you consolidate all of your debt onto one or two credit cards, it will appear you are “maxed out” on that card and that will penalize you.
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.
DON'T pay off collections or “charge-offs”.
If you want to pay them off, do it through escrow at closing. Talk to your lender first!