A short instructional piece advising prospective homebuyers on preparing their credit for a mortgage application. It emphasizes long-term preparation, reducing outstanding (especially high-interest) debt, avoiding new credit inquiries, increasing income, setting payment reminders, and checking credit reports for accuracy to improve credit scores and debt-to-income ratio.
Remember that preparing for a mortgage is a long term process. How exactly can you improve your credit score and lower the debt to income ratio? Reducing outstanding debt, especially high interest credit card debt, can improve both your credit scores and your debt to income ratio. Avoid applying for any new credit. You do not want to apply for anything at all because that inquiry will be another ding on your credit score. Increase income Set payment reminder Check your credit reports for accuracy because these can significantly impact your credit score. You'll see an improvement in the credit scores which will in turn improve the success of the mortgage application.
