Mortgage Guru

6 Pre-mortgage Moves People Always Recommend But You Should Avoid


When it comes to obtaining a mortgage, your credit score poses significant risks. Even if you are certain that you will agree, a marginally higher score may result in a change in the interest rate. Because mortgages handle large sums of money over many decades, these changes can have a significant impact. As a result, many people take steps to improve their credit before applying for a mortgage. If done correctly, it can save the cost of a car, a year’s college tuition, or a once-in-a-lifetime vacation. Replace your mortgage, and when done incorrectly, however, it can have the opposite effect. Below is the listed mortgage!

The 6 sinful mortgages

  1. Eliminating the use of credit cards:  This appears to be a good idea on the surface. Using too much credit harms your overall finances, and having a large total balance can harm your credit score. Thirty percent of your credit score is determined by how much credit you owe compared to how much credit you has available. Credit history accounts for 35% of your credit score.
  2. Expectations: This is a subtle but common error. Even if you have a bankruptcy or foreclosure in your past, you can qualify for a mortgage with a surprisingly low credit score. You won’t get the best terms, but you won’t be disqualified either. When looking for a mortgage with bad credit, it’s easy to believe that you’ll only be approved for a loan with bad credit terms.
  1. Additional Credit Accounts: We’ve mentioned it briefly, but the concept is important that it deserves its section. Applying for new credit accounts can harm your credit score for up to a year. This is especially true if you applied for multiple accounts or even declined one of them.
  2. Your Credit Report Too Late: A recent Consumer Reports investigation found 34% of Americans found at least one error in their credit reports. These mistakes can cost you your entire mortgage approval or increase the cost of your mortgage by thousands of dollars.
  3. Laxity following pre-approval: This is a common mistake because many people do not fully understand how mortgages work. Using HELOC to pay off the mortgage. Once you’ve been approved for a loan, the lender will never look at your credit again. You’re driving your new car or receiving your new credit card in the mail, and no one is concerned as long as you make your payments on time.
  4. Consolidation of Debts: We must be clear on this point. If done correctly, the right debt consolidation move can be ideal for your credit and mortgage. It reduces your use of existing credit cards while releasing funds each month to pay off existing loans. The issue with debt consolidation and mortgages is a lack of timing.


If you can’t prioritise paying bills that appear on your credit report, prioritise paying all of your bills on time. Stop requesting new credit of any kind. Pay your credit cards strategically to get the best maximum usage rate on as many cards as possible. Replace your mortgage. Request an increase in the credit limit on as many credit cards as possible, but do not use the additional space in the accounts. Using HELOC to pay off the mortgage.

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