Now that you know what lenders look for when making lending decisions and you understand that having good credit helps you qualify for lower-rate loans, you are ready to use this information to help you achieve your dream of home ownership!
Plan Ahead
Before you apply for a loan, start by reviewing your credit and getting your credit score six months to a year before you want to get a loan. It’s helpful to review your credit report early so you will have time to correct any errors and take steps to improve your credit if necessary. If your credit is not as good as you’d like it to be, consider improving your credit before applying for a loan. Don’t be discouraged; anyone can improve his or her credit rating over time. Just think about the money you could save in the long run. Even modest improvements to your credit could save you thousands of dollars over the life of your home loan.
Helpful Links
Sites with More InformationTo learn more about how credit ratings affect interest, visit the following sites:
Home Loan Learning Center
myFICO's How Credit Scoring Helps You
National Foundation for Credit Counseling
House America Counseling Center
These helpful links are also available in the Resources area.
Next Step
Confused about bankruptcy? Continue to Bankruptcy to review how it affects your financial status.