(Updated as of 10.6.15) If one of your future goals is to purchase a home, it’s never too early to start preparing yourself financially. One of the major factors that goes into getting approved for a home mortgage is your credit score and credit history. All lenders will look at your credit worthiness to determine how much they will lend to you. The following are steps you can start taking now to prepare your credit for buying a home in the future.
1. Research: Check and update your credit report. Consumers are guaranteed at least one free credit report a year; get a copy of yours to see where you stand. (If you find errors, you can contact the creditor or the bureaus to address any invalid information.)
2. Make Payments On Time: Payment histories are one of the most important components of your credit score, so it’s important to maintain on-time payments with all of your creditors.
3. Take Action: Talk to a lender about what will be best for your specific situation. Paying down balances and settling past judgements or liens may improve your credit score.
4. Hold Off: Avoid opening new accounts or making large purchases. They can be a red flag to lenders. Building credit? A couple of low balance, current credit cards can appear better than no credit cards at all.
5. Pre-Qualify: Talk to a lender now to find out how much home you can afford, and what steps you can take to increase your purchasing power.
6. Select a Lender: Lenders have different loans available based on location and borrower requirements. Speak with a few lenders to get an idea of the loan program best suited to your needs.
Beazer Homes wants to make shopping for a mortgage easier. Take advantage of our Mortgage Choices to find a preferred lender with a variety of loan options that fit your needs, budget and time frame.
Also, here is a handy infographic to share in social!
Beazer Homes is not a Lender, mortgage broker, loan originator, loan processor, or underwriter. Beazer Homes does not aid or assist borrowers in obtaining loans, solicit borrowers or Lenders for loans, offer or negotiate terms of loans, or make loans or credit decisions in connection with loans. Homebuyers should consult with a mortgage broker or lender of their choice regarding mortgage loans and mortgage loan qualification. See a Beazer Homes New Home Counselor for complete details. © 2015 Beazer Homes.