Credit Do’s and Don’ts: Protect Your Mortgage Approval and Secure the Best Rates

Good credit can make or break your mortgage application. Lenders use your credit profile to determine not just whether you qualify, but also the interest rate and terms you’ll receive. Even small changes during the loan process can affect your score and delay—or derail—your home purchase.

At Bunker Mortgage Team at Change Home Mortgage, we help clients navigate the credit waters every day. Here’s a clear, practical guide to the credit do’s and don’ts while you’re under contract or in the mortgage process.

Credit Do’s

✅ Stay current on all existing accounts Make every payment on time. Late payments during the loan process can raise red flags and potentially lower your score.

✅ Continue to use your credit as normal Lenders want to see your typical spending and repayment patterns. Drastic changes (such as suddenly stopping all credit use) can sometimes look suspicious.

✅ Keep records of your credit use Save statements, payment confirmations, and any correspondence with creditors. Good documentation helps us quickly resolve any questions that arise during underwriting.

✅ Call your mortgage professional If anything changes with your credit, employment, or finances, reach out immediately. A quick conversation can often prevent bigger issues down the line.

Credit Don’ts

❌ Don’t apply for new credit Every new application triggers a hard inquiry that can temporarily lower your score. Avoid store cards, auto loans, or credit cards until after closing.

❌ Don’t close credit accounts Closing accounts can shorten your average age of credit and increase your credit utilization ratio—both of which may hurt your score.

❌ Don’t max out credit cards Keep your balances well below the limits. High utilization (even if you pay in full each month) can signal risk to lenders.

❌ Don’t consolidate your debt Debt consolidation loans or balance transfers often involve new credit inquiries and can change your debt-to-income ratio at the worst possible time.

❌ Don’t pay off collections without speaking to us first While paying collections is generally good, doing so during the loan process can sometimes trigger issues with your credit report timing. Always check with your loan officer before making large payments.

Why This Matters

Your credit profile is one of the most important factors in locking in the best mortgage rates and terms. Following these guidelines helps keep your loan on track and positions you for smoother underwriting and faster closing.

Have Questions or Need Personalized Advice?

Whether you’re a first-time buyer, self-employed borrower, or looking at specialized programs like bank statement loans, Non-QM, VA, or community mortgage options, we’re here to help.