Buying a home is an exciting time, but it can also be filled with anxiety. One of the biggest factors in determining whether or not you will get approved for a mortgage loan is your credit score. Your credit score will influence what kind of interest rate and terms you can get on your loan, as well as how much money you will need to put down. So before you begin house hunting, take some time to review and improve your credit score if necessary. Here are some tips that will help make sure that when it comes time to apply for a loan, you are in the best possible shape financially.
- Pull your credit report and check for errors.
- Pay off any existing debts.
- Increase your credit utilization ratio.
- Make all loan payments on time.
- Avoid unnecessary hard inquiries.
- Monitor changes to your score over time.
- Reduce the amount you owe.
- Have a healthy mix of different types of credit accounts.
- Don’t open too many new lines of credit at once.
- Maintain a good payment history.
Having a good credit score is essential when it comes to buying a home, and the tips outlined in this checklist will help you ensure that your credit score is as high as possible. By taking these steps now, you will be putting yourself in the best position for success when applying for a mortgage loan. Do not forget to monitor changes to your score over time so that if any major shifts occur, you can take action quickly. With just a little bit of effort and preparation today, you could find yourself signing on the dotted line tomorrow! If you have any questions contact Matt Stout, from Consumer Financial Mortgage, to discuss your options and get the answers you need.