Step #1 – Know where your credit score is today. There are three (3) major credit bureaus: Transunion, Equifax and Experian. You’re allowed a (one-time per year) complimentary access to your credit report from: www.AnnualCreditReport.com. This is a federal approved website that won’t charge you or put you through a whole sales process. You’ll receive a recap of your report with recommendations to improve your credit score. BTW – be sure to review your credit entries carefully. Mistakes and mis-entries can happen which will affect your FICO score, be sure your reports are accurate. BTW – your 3 credit reports could be over 200 pages total. I would review it over several days.
Step #2 – Know what a good FICO/Credit score (Fair Issac Corporation) is to qualify for a home mortgage loan. To qualify for a low interest mortgage rate, you’ll need a number of items including a good to excellent FICO score. Keep in mind that the three credit bureaus will have three different scores, so you’ll lender will probably average out the scores or use the lowest.
Step #3 – Create a plan to improve your credit score. Here’s where a loan officer/consultant can be priceless. They can create a specific plan just for your credit scenario. A top notch professional won’t charge you for their service and will help you in an effort to earn your mortgage business in the future. Do not pay for a consultant, your bank probably has a loan consultant or we can connect you with a Loan Officer/Consultant, just send us an email request.
Most important – Building a FICO score of 750+ can take 30 days, 6 months or a year. Get started today to be ready to buy your dream home when it’s time. Checking your credit score (on all three credit bureaus) is always the first step in “Preparing to Buy a Home.”
