Preparing To Buy A Home
If you're waking up every morning thinking, "I want to buy a house!" then you know it's time to start considering how you're going to make that happen. Wanting to buy a house a very different than actually buying a house, and we have some tips to help turn those dreams into a reality. Read the first tip below and click here to read the entire article on preparing to buy a home.
Step No. 1: Boost your credit score
What do these three numbers have to do with buying a home? Well, pretty much everything. Your credit or FICO score—which reflects how dependable you are at paying bills—directly affects the interest rate on your mortgage and the amount of your monthly payments.
Most lenders require a minimum score of 620 for a mortgage (the U.S. average is 687), so you’ll want to do everything to lift your number before applying for a mortgage. The things that drag down the score include carrying an excess of debt, missing bill payments, or applying for too much credit. So can plain old mistakes.“If you find out there are items on your credit history that you think are incorrect, immediately start working with someone to mitigate these issues and contact all three of the largest credit-reporting agencies directly,” says Joshua Arcus, president of Siderow Residential Group. These agencies are Equifax, Experian, and TransUnion.