During the mortgage process, monitoring your credit is essential. Even small changes can affect your qualification or rate.
Check all three credit bureaus weekly through AnnualCreditReport.com. Don't make any large purchases, open new accounts, or close existing ones.
Monitor for unauthorized inquiries or new accounts. If your score drops significantly, contact your lender immediately.
Monitoring Tools
Use AnnualCreditReport.com (free weekly). Set up credit monitoring through your credit card or bank. Many offer free credit score tracking. Check for significant changes.
What to Watch For
Watch for: new hard inquiries (you didn't authorize), new accounts (you didn't open), sudden score drops (could indicate identity theft), and old negative items falling off.
What to Avoid
Don't: apply for new credit cards, finance a car, open store credit cards, take out personal loans, cosign for anyone, or make large purchases that increase your debt load.
Score Changes
Minor fluctuations (5-10 points) are normal. Larger drops (20+ points) need investigation. Rate changes may occur if your score drops below a rate tier threshold.
When to Alert Your Lender
Alert your lender if: your credit score drops more than 20 points, you see unauthorized inquiries, you miss a payment on any account, or you have any credit changes.
Tips
Keep a copy of your credit reports from before you applied. If unauthorized accounts appear, report them immediately. Stay disciplined about not using credit during the process.