If you are planning to apply for a mortgage loan, it is time to give your credit score some serious attention. Your credit score is crucial to the home buying process for two main reasons:
- It determines whether or not you will qualify for a mortgage loan.
- It impacts your mortgage loan terms, such as the interest rate.
If your credit score needs a boost, it will take several months of making good financial decisions to see improvement. Below are 7 steps you can start taking NOW to better position yourself for home ownership.
- Check your credit report and correct inaccuracies.
- Pay your bills on time.
- Pay overdue accounts.
- Get added as an authorized user. What is this?
- Use less of your available credit.
- Stop applying for new credit.
- Keep unused accounts open.
For more helpful home buying tips, check out our Home Buyer New Year’s Resolutions blog here.