Credit Do’s & Don’t’s
A FNMA regulation called “Loan Quality Initiative,” requires lenders to check credit, BEFORE CLOSING, to make sure borrowers have not incurred any new debts. Watching your credit is more important than ever, so take a look at the following helpful tips that can save you time and money while going through the loan process.
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DON'T
Don't- Consolidate your debt onto 1 or 2 credit cards
Don't- Apply for a new credit card within 45 days of signing
Don't- Max out or overcharge your current credit card accounts
Don't- Close credit card accounts, even if you haven't used them in a while
Don't- Payoff any collections or charge offs
Don't- Do anything that will cause a red flag to be raised by the scoring system (This includes adding new accounts, co-signing on a loan, changing your name and address with the bureaus
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DO
Do- Join a credit watch program
Do- Stay current on existing accounts
Do- File business and personal tax returns and/or extensions
Do- Explain or document all inquiries on your credit report
Do- Disclose all debt - even if it did not show up on your credit report
Do- Continue to use credit as normal
Do- Work with your knowledgeable Loan Originator
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