3 Steps to Get Your Credit Ready to Buy a House
If you are just starting the process to buy a new home, there are steps you can take to ensure your credit is mortgage-ready. The steps to buying a house can be overwhelming so don’t feel alone if you find yourself feeling stressed. Each year, 32% of people shopping for homes are first-time home buyers so rest assured you are not alone. When you search for real estate agents in Los Gatos, they will be able to help you through each step of buying a home.
Start By Checking Your Credit Score
It’s never too early to check your credit report and scores to establish your baseline and create a plan of action. All real estate agents in Los Gatos will suggest checking your report with each of the credit bureaus. The three most common are Equifax, Experian, and TransUnion. You can get your report for free, which will allow you to review it for any errors and to see where you currently stand. It’s recommended that your score be at least 620 to qualify for most conventional mortgage loans, though there are different options available with other loan options. Reach out to real estate agents in Los Gatos with any questions regarding your specific situation.
Don’t Apply For Any Big Loans or Credit Lines
Once you have your credit within your desired range, it’s important to keep it consistent throughout the loan application and home buying process. You can ensure there are no major changes with your score by limiting your expenses and not applying for any large lines of credit. It’s important to make sure your debt to income ratio stays within a balanced range for the mortgage lenders and that your score is not dropping from taking out new loans.
Make All Your Monthly Payments
One of the easiest ways to boost your credit score and to make sure it stays within a positive range is to make all of your monthly payments on time, each month. If you find it challenging to remember your different payment dates, try to set your bills to an automatic payment schedule. This will help make sure all your bills are paid promptly each month and your score will be reflected for your hard work. Missing just a few payments can cause your score to drop out of the range deemed acceptable by most mortgage lenders.
While the steps needed to purchase a home can be stressful, finding reputable real estate agents in Los Gatos will provide you with support throughout the entire process. Be sure to check your credit report often and make your payments on time for an easy and hassle-free real estate experience.