What NOT to do when trying to qualify for a home loan | The Boutique Real Estate Group

We get so caught up in the moment!   Is there granite on the kitchen counters?  Is the master bedroom big enough?  Is there grass in the backyard for our dog?  And we have not even closed escrow yet and we are shopping for furniture, buying new cars and opening up new credit cards to fill the new house!  YIKES!!!

Here are some helpful tips on what NOT to do when buying a new home or when you are trying to qualify for that new mortgage…

1) Do not open, close, or extend credit lines/limits once you are formally in escrow.

2) Refrain from having any inquiries to your credit 90 days in advance of applying for a mortgage as all inquiries must be explained to the lender in writing and all inquiries reduce the borrower’s credit scores.

3) Since you must disclose all new accounts that are opened during the escrow period, it is important to not open any new trade lines during the entire escrow period. Only after the loan is recorded, is it “safe” to open a new account or extend the credit limit on an existing account.

4) To play it safe, discuss your debt ratios with the loan officer to see if making any type of a purchase will negatively impact your ability to qualify for the loan.

5) Most appliances, furniture, and decor purchases are larger than normal purchases so it is safer to refrain from doing this until the loan is recorded.

6) Please note that lenders typically run an additional credit report before the loan funds. The intent is to see if there is any new debt that now appears. All new debts must be re-evaluated and explained and this may have a negative impact on the borrower’s ability to qualify.

For more info on the right loan for you please call Allycyn Bennett at United American Mortgage Company at 949-717-7290 or email her at abennett@uamco.com