One of the most important pieces to the puzzle when it comes to buying a home is your credit. Meet with your loan officer and find out if you have any issues on your credit report.
The best way to improve your credit score is:
- Pay your bills on time
- Shrink your credit ratio (lower the amount you owe on credit cards)
- Pay off your credit cards but do not close the accounts
- Get up to date on any outstanding debts (such as collections)
- Look for any errors on your report
- Avoid opening any new credit cards
While you are working on your credit report, also work on getting your finances in order.
Suggestions for improving your finances are:
- Establish a separate account (maybe a new savings account) to save for your down payment
- Avoid large deposits into your bank accounts, especially cash deposits
- Avoid new inquiries on your credit report
- Review your credit report
Keeping an eye on your credit report will make it easier for you when it’s time to buy. If you can put money into a separate account, it may be easier to avoid touching it! Once you are ready to buy, talk to your loan officer and get your mortgage approval ready. Then it’s time to go shopping for your new home!!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
