Whether
you are buying a new home, refinancing
or getting a home equity loan,
your credit report is perhaps the most significant factor in determining
your mortgage application’s approval, interest rate and monthly payment.
It is important that borrowers do everything they can to protect their
situation during the application phase.
Very simply, it is essential that borrowers do not jeopardize their
chances of the best possible rate and terms during the application
phase of the mortgage,
therefore they should refrain from any financial activity that will
significantly alter their credit profile.
For example, mortgage applicants should not apply for, or accept,
any new credit cards or other loans while their mortgage paperwork
is being processed. They should delay any major purchases, such
as cars, until after they have settled on their property and signed
all applicable mortgage documents.
Since the mortgage approval process can take several
weeks, and sometimes even months, lenders will commonly pull an additional
credit report just prior to settlement to look for significant changes
to a borrower’s profile that would otherwise change the terms of their
approval. In the event that something new is noted, the lender reserves
the right to withdrawal their initial
