During the loan process, you’ll want to avoid negatively impacting your loan pre-approval in any way. Lenders look for stability and consistency, and you are responsible for maintaining your financial situation all the way through to loan closing. 

Here are some simple do’s and don’ts to follow while your loan is in process:

Don’t apply for new credit. New credit inquiries can negatively impact credit scores. Depending on the elements in your current credit report, a credit score can drop as much as 15 points for a single credit inquiry. 

Don’t make large purchases. This is especially true if the lender wants verification of down payment monies and closing funds. You’ll also want to avoid making large purchases on your credit cards, since this can impact your credit scores. Use credit modestly during the loan process, and avoid major credit purchases. Balances exceeding 30 percent of the total available credit line can bring credit scores down. This includes transferring debt from one card to another, which will impact the total available credit per card. 

Don’t close credit accounts. Closing a credit card will adjust the total amount of available credit, which will impact credit scores. Also, closing a card may impact other factors to your score such as the length of your credit history. 

Do sign up for credit monitoring. This will help you watch your credit throughout the loan process. For a small fee, the credit bureaus and other companies offer monthly monitoring services to inform you of any new credit activity that may impact your scores. Credit monitoring is especially helpful to detect the first signs of identity theft. 

Do pay bills on time. Stay current on existing accounts and avoid any late bill payments. 

Finally, do stay in touch with your loan professional. Consult your mortgage professional with questions about whether a specific action can affect your loan pre-approval during the loan process. 

If you or someone you know would like to learn more about the home loan process, please get in touch. I’m happy to help!


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  1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
  2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.
  3. Don’t charge your credit cards to the maximum limit.
  4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
  5. Don’t order items for your new home on credit — such as appliances and furniture — until after the loan is approved. The amounts will add to your debt.
  6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.
  7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
  8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.

5 Factors Affect Your Credit Score

  1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
  2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
  3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
  4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
  5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.