Lenders will typically pull a final credit report prior to closing on a mortgage loan refinance. So even if you have been approved and gone all the way through the process a ding to your credit could either change the loan terms you are offered or disqualify you altogether.
Do not apply for a credit card even if it offers you a discount on a purchase; that $10 to $25 dollar savings on those shoes could end up costing you even more if it changes your credit score. As mortgage brokers and loan officers one of the biggest mistakes we have seen borrowers make is to apply for credit during the process of a mortgage loan refinance. This can have a negative impact on your credit score and cause you to not be approved.
Once you have been pre-approved for your mortgage loan refinance don’t make any major purchases or accept any offers that require a credit to be pulled on you or any co-borrowers. You can wait to purchase a new couch until after your closing.
For mortgage advice, call the mortgage loan refinance experts at Midland Mortgage Corp. at 803.765.1680 or toll–free at 800.854.9484.