Home Buying 101: 7 Ways to Boost Your Credit Score

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:

1. It determines whether or not you will qualify for a mortgage loan.
2. 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.

1. Check your credit report and correct inaccuracies.
2. Pay your bills on time.
3. Pay overdue accounts.
4. Get added as an authorized user. What is this?
5. Use less of your available credit.
6. Stop applying for new credit.
7. Keep unused accounts open.

For more helpful home buying tips, check out our Home Buyer New Year’s Resolutions blog here.