When refinancing your home to…
…consolidate your debts, one mistake borrowers make is thinking they can stop making the payments on the debts they are going to pay off. If for some reason the mortgage doesn’t close on time and you haven’t made the debt payments, they could fall 30 days late which could impact your credit scores negatively. Some lenders will re-pull credit before the closing to insure that the borrowers credit hasn’t changed. And, if the credit scores are lower than when the loan process was started, the loan could change or be canceled. Always make sure to continue making the monthly payments on the debts you are going to consolidate right through the loan closing.
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