These Credit Mistakes Could Cost You Your Home

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Many times when people are looking for a home, or even after they have made an offer to purchase the home, they are tempted to play with their credit. Do not do this because it can jeopardize the purchase of your home. Here are some common credit mistakes to avoid when waiting to close:

First, it’s important that you do not make inquiries on your credit report. Accept the fact that you’re not an expert. Even a harmless inquiry on your credit can hurt your credit score, cost you points on the interest of the mortgage, and derail your sale.

Next, be sure that you do not establish new credit. Throw all of the credit offers away, even the ones that offer you money back on recent purchases, as these will affect your credit score as well.

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Do not close credit accounts, even if 
they are accounts that you do not 
use or have not been used in a while.

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Do not close credit accounts, even if they are accounts that you do not use or have not been used in a while. Also, do not increase your credit limits, as having a higher limit will not make you look better in the eyes of the bank.

To add to that, make sure that you do not try to buy a car or make any major purchases at the same time you are purchasing a home. In fact, do not buy anything with a credit card or put anything on layaway. Stores with layaway programs will check your credit history, and when that happens, your credit score will be affected. I know you may be desperate to buy that new washer/dryer or new furniture, but know that these purchases can end up costing you your sale.

Please keep all of this in mind so that you do not end up inadvertently putting the purchase of your home in jeopardy. Be patient and you will get through to the end.

If you’re looking for a strong salesman to help negotiate the sale of your home, or a savvy agent to help you navigate this tough Miami market, please give me a call or send me an email. I’d be more than happy to help you.