National Buyer’s Agent Association Blog 

Many people make these mistakes between the time that they apply for a mortgage and the time they close on a piece of property because they just don’t know that they should avoid doing them. Unfortunately for some these mistakes cost them the ability to purchase a home.

Many people make these mistakes between the time that they apply for a mortgage and the time they close on a piece of property because they just don’t know that they should avoid doing them.  Unfortunately for some these mistakes cost them the ability to purchase a home.

1. Don’t Close Any Accounts: by doing this it makes it look like you have less available credit. Pay accounts down to 30% or them off if you insist but don’t close them!
2. Don’t Open new Accounts or Make New Bills: new accounts create a FICO-reducing triple whammy of a new account/inquiry.  The short credit history combined with the high balance to credit limit ratio are both bad.  Opening major lines of credit may make it appear to a lending institution that you are having financial trouble.
3. Don’t Buy A Car: like other major purchases on credit an auto account shows you at your credit limit, so it looks like you are maxed out.  This kind of large purchase also effects you debt to income ratio. You’ve increased your debt without increasing your income.
4. Don’t Pay Your Bills Late:  Paying your bills late can drastically affect your credit. There is nothing worse than barely getting approved finding the right house making an offer and then no longer qualify because they’ve been late on their bills while house hunting.