Make sure all the information listed on your report is accurate and work to correct any mistakes. The higher your credit score, the more likely you will be to receive a better interest rate for your mortgage, which will translate into more "Home for your money"
Many potential buyers believe that they need a 750% FICO Score or higher to be able to purchase a home. The truth is, over 53% of loans were approved with a FICO score under 750 last month.
HERE ARE SOME TIPS FOR IMPROVING YOUR CREDIT SCORE:
* Make payments, including rent, credit cards, and cal loans on time.
* Keep your spending to no more than 30% of your limit on credit cards.
* Pay down high-balance credit cards to lower balances, and consider balance transfers to free up credit.
* Check for errors on your credit report and work towards fixing them.
* Shop for mortgage rates within a 30-day period -- Too many spread-out inquiries can lower your score.
* Work with a credit counselor or a lender to improve your score.
Once you know your score, your next step will be finding a lender and getting pre-approved for a mortgage. Doing this will ensure that you know your budget before you start looking for your dream home.
