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Credit Report Changes Could Affect Your Mortgage Loan Application

If you are in the process of buying a home, you probably have received a checklist of things you need to do or information you need to provide to your lender in order to move forward with your loan application. One step of the mortgage process is determining the client’s credit worthiness. Even if your mortgage lender has already checked your credit and accepted your application, any change in your credit score could hurt your loan eligibility and your chances of getting a loan.

Events that could affect your credit score

Credit scores change constantly. Events that may influence your credit are:

• Late or missing payments
• Changing jobs
• Moving
• Applying for a credit card
• Applying for a loan
• Requesting a credit increase on a credit card
• Having high credit card balances
• Closing a credit card
• Mistakes on your credit report

There is no exact science as to how credit bureaus calculate scores. However, it is wise to play it safe and avoid making any change to your financial status in order to avoid putting your loan eligibility in jeopardy. If you ever have a question regarding any change that could affect your credit score and mortgage qualification, check with your mortgage banker first to help you avoid headaches in the future.

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