Top Ten Credit Don'ts During the Loan Process

With interest rates at historic lows, many people are taking advantage by purchasing a home or condo or refinancing one they already own. However, it is very important to note that the guidelines and credit requirements to qualify for loans have really tightened up so being prepared and knowing the potential pitfalls is very important.

So here is a list of the top ten don'ts while you are engaged in the loan process:
1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals

This list was developed by leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari.

Source: Craig Walker, Cascade Mortgage