Second Look Mortgages – When Soft Inquiries Cause Problems

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Second-Look Mortgages When Soft Inquiries Cause
Problems
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• Most financial institutions don't want you to
  know that soft inquiries or "second looks" can
  make or break your mortgage, but the truth is
  that anything you do financially between first
  approval and finalization can change the outcome
  of your application. 
• Now, although soft inquiries won't affect your
  credit, they will reveal anything that has gone
  on in your bureau since you first applied. This
  means that recently defaulted payments or new
  lines or credit revealed during these soft
  inquiries could potentially prevent you from
  getting the mortgage you want, or the rate you
  were initially quoted. 
• So, if youre still shopping around what kind of
  hard inquiries should you avoid?

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Purchasing a vehicle

• Financing a vehicle is a bad idea both for the
  hard inquiries that will appear on your bureau
  and the new trade line that will be opened (both
  of which affect credit score).

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Excessive charging

• While you may be tempted to furnish your new
  house on credit, taking your cards to the limit
  lowers credit score and tells your lender that
  you cant handle any more debt.

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Missing payments

• If you can't pay your phone bill, you probably
  can't pay your mortgage. While you should never
  miss payments regardless of if you are mortgage
  hunting or not, missing payments before
  finalization will give a bad impression during
  soft inquiries.

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Taking out a new line of credit

• If you are offered a pre-approved credit card
  before you sign, don't take it. Remember, your
  lender assumes that if you can spend, you will
  spend, and even if your new 3000 credit card is
  empty, you now have additional hard inquiries
  that you may need to remove with the help of
  Inquiry Busters, and are also 3000 riskier.

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Cancel an existing line of credit

• Maybe you have an old card you don't need, you've
  had it for years and don't use it anymore so you
  decide to cancel it- big mistake! Regardless of
  if you don't use the card regularly, it
  contributes to your overall credit score and
  proves that despite having access to credit, you
  haven't used it, and can be trusted to handle
  your debt responsibly. 
• In short, if it involves credit dont! Always
  wait until your mortgage is finalized first.

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• Thanks for stay with us.