How Credit Changes Can Affect Your Loan:
Buying a home is exciting, but the mortgage process can feel like a waiting game—especially when it comes to your credit score. Many borrowers assume their credit score is locked in once they get pre-approved, but that’s not always the case. While we typically don’t need to pull a new credit score unless your last pull was over 120 days old or there are issues with the original report, unexpected changes can still happen. Here’s what you need to know to keep your mortgage on track.
When Does a Lender Pull a New Credit Score?
In most cases, your initial credit report is good for up to 120 days before closing. However, there are situations where we may need to pull a new report, including:
Disputed Accounts – If your credit report contains disputed accounts, we may need to get an updated version after those disputes are resolved.
Incorrect Information – Something as simple as leaving out "Jr." or "Sr." in your name on the application can cause mismatches that require a new report.
Expired Report – If your original credit report is older than 120 days at the time of closing, a fresh pull is required.
How Credit Changes Can Affect Your Loan
Even if we don’t pull a new score, changes to your credit activity can impact your mortgage approval. Lenders typically do a final review before closing, and new debt or missed payments can raise red flags. Here’s what could cause issues:
New Credit Inquiries – Opening a new credit card or financing a big purchase (like furniture or a car) can lower your score and increase your debt-to-income ratio.
Late Payments – A single missed payment can have a significant impact on your score, potentially affecting your loan terms.
Increased Debt – Running up credit card balances can change your debt-to-income ratio, which could affect your loan approval.
How to Protect Your Credit During Underwriting
To keep your mortgage process smooth, follow these tips:
✅ Avoid applying for new credit or making large purchases.
✅ Continue paying all bills on time.
✅ Keep credit card balances low.
✅ If any issues arise, communicate with your lender as soon as possible.
While credit score changes don’t always require a new pull, they can still impact your loan. By keeping your credit stable, you’ll help ensure a stress-free closing process. If you have any questions, reach out to your loan officer—we’re here to help!
Rich Seiler Jr. is a Licensed Mortgage Professional of Shupe Lending Group NMLS ID# 2478065. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders' overlays on government and conventional loans. We have a reputation of being able to work with over 270 different lenders to be able to offer out clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, evenings, weekends, and holidays.
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