• Toni F. Ryan

10 Credit Do's & Don'ts to Remember Prior to Getting a Mortgage Loan



How can a fully approved loan get denied for funding after the borrower has signed loan docs? Simple, the underwriter pulls an updated credit report to verify that there hasn't been any new activity since original approval was issued, and the new findings kill the loan.

This generally won't happen in a 30 day time-frame, but borrowers should anticipate a new credit report being pulled if the time from an original credit report to funding is more than 60 days. Purchase transactions involving short sales or foreclosures tend to drag on for several months, so this approval / denial scenario is common.

Why this happens?

It's can be an ugly cycle where by the buyer receives an approval and thinks everything is OK so they make a credit impacting decision (buys new car, furniture, runs up credit card balance).

The lender's Funder pulls new credit report right before they fund the loan to check for changes. The Funder sees the new credit or larger balances and denies the loan.

What do you need to know?

In the hopes of stemming the senseless slaughter of perfectly acceptable loan approvals, check the “Ten Credit Do's and Don'ts” List below to help ensure a smoother loan process. These tips don't encompass everything a borrower can do prior to and after the Loan Pre-Approval process, however they're a good representation of the things that will most likely help or hurt an approval.

1.  DO continue making your mortgage or rent payments 2.  DO stay current on all accounts 3.  DON'T make a major purchase (car, boat, big-screen TV, etc…) 4.  DON'T buy any furniture 5.  DON'T open a new credit card 6. DON'T close any credit card accounts 7.  DON'T open a new cell phone account 8. DON'T consolidate your debt onto 1 or 2 cards 9. DON'T pay off collections 10. DON'T take out a new loan


Follow these Do's and Don'ts for a smoother mortgage approval and funding process. Just remember this simple tip: Wait until AFTER the loan closes for any major purchases, loans, consolidations, and new accounts and always consult your loan professional for advice before you make any changes.


ABOUT THE AUTHOR


Toni F. Ryan | NMLS#230507

Senior Loan Officer | Synergy One Lending


Toni F. Ryan has over 20 years experience in mortgage lending - both on the wholesale and retail levels. She believes that education is key to making the best decision for YOU! She shares her insight into the lending world here and encourages your feedback. Don't forget to connect on Facebook!

The information contained herein is for informational purposes and should not be construed as personal advice. Please consult your mortgage professional BEFORE making any changes to your financial profile. No guarantees or promises are expressed and by visiting this site, you agree to not hold Toni F. Ryan or Synergy One Lending responsible for any decisions you make based on the information stated. All of the content here is the sole property of ToniRyan.com and cannot be duplicated without express written consent. If you choose to reference this material - please include a link to the source and state the authorship clearly.Synergy One Lending is licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act, Synergy One Lending Inc. NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108

© 2019 by Toni F. Ryan - NMLS#230507

Direct/Text (530) 305-7668  |  tryan@s1lending.com

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(530) 305-7668

Synergy One Lending Inc., NMLS 1025894. 3131 Camino Del Rio N 190, San Diego, CA 92108. Alabama Consumer Credit License #22123; Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act – California License 4131356; District of Columbia Mortgage Dual Authority License MLB1025894; Hawaii Mortgage Loan Originator Company License #HI-1025894; Illinois Residential Mortgage Licensee #MB.6761115; Maine Supervised Lender License 1025894; Maryland Commissioner of Financial Regulation - Mortgage Lender License 21678; Minnesota Residential Mortgage Originator Exemption #MN-OX-1025894; Nevada Mortgage Broker License #4317. Licensed by the New Hampshire Banking Department 19926-MB; Licensed by the New Jersey Banking and Insurance Department – New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; Oregon Mortgage Lending License ML- 5208; Rhode Island Lender License #20163229LL. Rhode Island Loan Broker License #20163230LB; Vermont Lender License 6891. Washington Consumer Loan Company License CL-1025894. Toll Free #: (877) 978-1922. Subject to Credit Approval. www.nmlsconsumeraccess.org

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Loan Consultant | NMLS #230507

SYNERGY ONE LENDING

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