Almost everyone has heard about the three little numbers that seem to control every aspect of your life from your insurance premiums, to credit card promotions and mortgage interest rates. Your credit score. Whether high or low, your score is a very important piece of the home-buying process and you should be aware of what it is. 

Know Where To Go First With Your Credit Report 
You should check your credit report with each of the three credit bureaus, Equifax, Trans Union, and Experian, once a year or so. You're entitled by law to one free copy of your credit report from each of these three credit bureaus once a year. 

If you are considering buying a home in the next 12 months, do this right now! You don't want anything to stand in your way once you have found the home of your dreams. Inaccuracies on your credit report or outdated information could turn your dreams into a nightmare if you don't address them well in advance of making any large purchase.

Why Is My Credit Score So Important When Buying A Home?
One of the first items a mortgage professional will review is your credit score. While a low score does not necessarily prohibit you from obtaining mortgage financing, you may not be able to secure the most attractive rates and programs. Since poor credit scores are considered an indicator of a higher risk borrower, you may required to pay a higher interest rate or put down a sizable down payment. 

Mortgage lenders also review your credit history. In order to justify that you are well qualified to pay back your mortgage loan, things like the number of trade lines (i.e. lines of credit), age of accounts (how long they have been paid on time) and balance to total credit line ratio are carefully reviewed. 

What Are The Next Steps? 
Once your credit report and all of its parts are well in order, I encourage all of my first-time home buyers to get a pre-approval from a mortgage lender BEFORE we go and look at any homes. I cannot tell you how important this step is and it is one that should not be taken lightly. Your mortgage professional will work very closely with you throughout the entire process. They will guide you from pre-approval to mortgage commitment to closing. When meeting with a mortgage professional for the first time, you should be prepared to bring a number of items with you (i.e. pay stubs, bank statements, etc.). These items, along with your credit report, will allow your mortgage lender to help you determine what size mortgage you will qualify for. That number along with the size of your down payment will guide what price range we should explore. 

I am committed to providing all of my clients the most courteous and professional service possible and educating you is just another way for me to do this.