How to prepare your credit to buy a house

For many, a home is the biggest purchase they’ll ever make. Knowing your credit health can help ease the stress of such a major financial decision. If you’re worried about qualifying for a mortgage, creating a foundation of good credit and financial habits can help you achieve your goals.

Practicing healthy credit habits before buying a home may help you secure a mortgage with favorable loan terms. This can make your dream home more affordable. But just as important, you’ll go into the process with confidence in your credit and financial standing. Below are some tips on how to prepare your credit to buy a house:

Know what’s in your credit reports

Your credit reports are part of the financial story you’re telling to banks and lenders. Your reports are provided to lenders and the information within is what determines your credit score. You want to make sure the story is a true reflection of your history with credit. You can get free access to your credit reports weekly at annualcreditreport.com.

 

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