You Want to Make Sure Your Credit is in Good Shape Before Buying a House
Buying a home is a major life step for those of us trying to make that dream into a reality. There are a few pointers regarding your credit, and the do’s and don’ts that could potentially hurt your ability to be approved for a low interest mortgage. Before you began your home search take a minute to analyze your credit, so you get the most for your money.
- You need to know what is currently appearing on all three of your credit reports prior to your loan application in order to avoid any unpleasant surprises.
- Sometimes paying down the balances on your accounts can have a positive impact on your credit scores as well. However, all balances are not created equal when it comes to credit scoring
- The two most common mistakes consumers make prior to applying for a mortgage are a) increasing credit card debt, and b) applying for or opening new credit accounts during the underwriting period.
“A mediocre credit score can cost you tens of thousands of dollars over the life of a loan.”