When buying a home, it is very important to be very careful about spending. Lenders now check the buyer's credit at the time of application as well as right before closing. For a buyer who has opened a new account or even charged a big purchase, you may no longer qualify to buy a home. This can be devastating to buyer's who have, for instance, sold their prior home and are waiting to close on their new one.
As a real estate professional, I find it very important to educate folks about the changes in our industry prior to getting them under contract. No matter how great your credit is, in the new mortgage industry, the old rules don't apply. From the time you make loan application, you should limit your credit card purchases to a minimum and never apply for new credit during the process.
Another item of concern is credit card fraud. A good idea is to remove yourself from pre-approved credit card offers by calling 888-5optout. For many credit card thieves, finding a pre-approval letter in the trash is like finding gold. Your best bet is to remove the possibility of of accidentally throwing an offer out instead of shredding it. Additionally, many thieves remove the offer from your mailbox without your having even seen it. Once your identity has been stolen, it is very hard to undo. If you are thinking of buying a home and find out your identity has been stolen, this can be a huge road block.
I work very hard to make sure my clients are educated about how important credit can be as well as identity fraud as well as the new lender practices. If you have questions about this article, feel free to email, call or text me anytime.
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