Applying for new lines of credit
If you apply for a new credit card or request a credit limit increase a few months before closing, watch out: Credit inquiries ding your credit scoreby up to five points. So, don’t let the credit inquiries add up.
"Worse than the actual hit on your credit score is any pattern of trying to borrow more money all at once,” says Glenn Phillips, CEO of Lake Homes Realty. Translation: Applying for multiple lines of credit while you’re buying a house can make your mortgage lender think that you’re desperate for money—a signal that could change your mortgage terms or even get you denied altogether, even if you've got a closing date on the books.
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