Say NO To New Credit!

So you’re all set to buy a house!

You’ve applied with a lender, gotten your paperwork in order, and are ready to start looking for the home of your dreams. You’ve even decided to get a store credit card to a home improvement store, which will save you 5% on all the things you’ll need for your brand new house!


This situation comes up SO OFTEN that many lenders will send out a list of “rules” to home loan applicants. A big one is DON’T apply for a new credit card once you’ve applied for a home loan! 

It doesn’t seem like a big deal, but you have to remember the process of applying for a mortgage:

  1. Apply for a mortgage and have your credit report checked
  2. Get a Pre-Approval
  3. Your offer is accepted on your DREAM HOME
  4. Just before closing your credit report is checked a second time to make sure NOTHING HAS CHANGED
  5. You sign closing documents and complete your purchase!

A mortgage Pre-Approval is a CONDITIONAL guarantee of financing based off your credit, income, and down payment. If any of these factors change before closing on your home loan the lender has to reassess all of the factors before your loan can be approved.

Getting a store credit card seems like nothing, but any changes to your credit report, such as opening a NEW CREDIT LINE can affect your Pre-Approval! Even if a change to your credit is necessary it is important to let your lender know IN ADVANCE.

I’d love to help you figure out how to start working towards owning a home NOW! Comment down below! 👇 

Justice Roberts Loan Officer

Justice Roberts

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