Knowing your credit score or getting a recent copy of your credit report is
one of the first steps that you can take toward knowing how ready you are to
start the home buying process.
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 that according to Ellie
Mae’s Origination Report, 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 car
loans, on time.
Keep your spending to no more than 30% of your limit on
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 toward
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
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.
The Militello Team has been selling real estate North of Boston in Essex County on the North Shore for over 40 years. We know the lenders in our area that can meet your deadlines. Call us today and we will advise you on your next steps in the home buying process!
THE MILITELLO TEAM
JOSEPH (978) 815-3877
KATHLEEN (978) 500-1480
source: keeping current matters