Getting Ready for a Mortgage
Check your credit report at least once each year
This will help you determine if you have something that you need to work on: www.annualcreditreport.com.
Create a budget….and stick to it!
This will help you determine how much you have available to spend.
Pay your bills on time.
A large part of your credit score depends on how timely you are with bill payments.
Borrow only what you can afford to pay back.
A general rule of thumb is to spend no more than one-third of your income on debt.
This includes mortgages, credit cards, and consumer loans. (For example, student loans, car loans, and lines of credit).
Be responsible with credit card debt.
Ideally, you want to keep your balance below 30 percent of your credit limit. Even if you pay off your bill in full every month.
Communicate with your lender
If you want to change your finances in any way, or you have questions; call your lender.
Increase your debt
Do not use your credit card on large purchases.
Example: furniture, lawn mowers, cars, etc.
Do not transfer credit card balances.
Do not consolidate debt.
Do not pay charge offs unless lender advises you to do so.
Do not open any additional lines of credit.
Example: Credit Cards, cell phone account, or any new account.
Don’t make any large deposits into your bank accounts without having proof as to where they came from.
Don’t withdraw large amounts of money from your bank accounts.
Stay at your current job or the same field for 2 years. Mainly, because lenders are looking for stability in income.
Ignore negative items on credit report
If you have something that needs addressed on your credit report, correct it as soon as possible.
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