Do’s and Don’ts with Credit During the Home Buying Process


When buying your next home, changes to your credit (additional accounts, closing accounts, fluctuating credit card balances) can result in the lowering of your credit score. If your credit score changes, that can affect your interest rate and even the loan approval itself. Therefore, it is imperative that there are no major changes to your credit and information provided, during this process.

In order for your loan to reach final approval and fund, you’ll want to adhere to the following:

  1. DO NOT charge any new items on your charge cards (higher balances will lower credit scores).
  2. DO NOT apply for any new charge cards or loans (new credit trade lines and credit inquiries can lower credit scores).
  3. DO NOT buy or lease any new major purchases – especially cars, furniture, appliances,
    etc… (even “no interest” loans as they appear as new credit trade lines and will affect your debt to income ratio).
  4. DO NOT co-sign for anyone’s loans for any reason.
  5. DO NOT allow anyone to check your credit unless in the shopping process and even then, know the consequences (each inquiry may lower your credit score).

    Some other notable tips would include:

  6. DO NOT change employment may result in loan denial.
  7. DO NOT start any new remodeling jobs.
  8. DO continue to make all payments on time

A new credit report will be pulled before closing to make sure no new credit has been established and any inquiries will have to be verified to that effect. Following these simple rules, will ensure a stress free loan process from the standpoint of your credit report.

If you’d like to learn more about what factors affect your credit score, check out Fair Isaac Corporations website section called “What’s in your FICO® score?”

Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI


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The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes listed for sale. The role of the Preferred Loan Officer is to assist in determining a comfortable home price range for Home Buyers Marketing II, Inc. (HBM II) to use when it is searching for property listings within the buyer’s search criteria.