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Credit Do's and Don'ts For Buyers



Congratulations! Important things to know while in escrow. Basically, what to do and what not to do while in process of getting approval for a new home loan.

Good credit is crucial when it comes to obtaining the best interest rates and terms on a mortgage. Here are some credit do’s and don’ts when going through the mortgage process:


· DO notify you lender immediately if any of the following change: employment, income, assets, credit history, marital status or address.

· DO tell your lender if you will be on vacation or away on a business while your loan is processing.

· DOstay current on existing accounts.

· DOcontinue to use your credit as normal.

· DOkeep records of credit use.

· DOcall your mortgage professional with any questions or concerns about your credit.

· DO give your lender your Homeowner’s insurance agents information 3 weeks prior to closing.


· DON’Tapply for new credit.

· DON’Tclose credit accounts.

· DON’Tmax out credit cards.

· DON’Tconsolidate your debt.

· DON’Tpay off collections.

· DON’T lease a new car.

· DON’T transfer funds between bank accounts as each will need to be sourced (documented with a paper trail). If you must, call your lender BEFORE you do for guidance!

· DON’T Deposit funds into your bank account particularly one that is > than 25% of your monthly income as it will need to be sourced (documented with a paper trail). If you must, call your lender BEFORE you do!


Knowing what to do and what not to do will ensure that you close on time and don’t comprise the purchase of your new home.

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Phone: Phone: 408-859-2932

Email: don@rwcastlerock.com

1261 Lincoln Avenue, #114
San Jose, CA 95125

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