When the time is right for you to buy a home, make sure you are financially fit and eligible for the best possible mortgage rates.
Here are five tips to boost your 'financial fitness':
- Whip it. Whip your credit rating into shape: pay your bills on time... every time. Keep your oldest credit card for its history, and make sure it is always paid on time. Try not to apply for new credit, which includes co-signing for any type of loan.
- Follow the 33% rule. Never run up a credit card or line of credit past 33% of its available limit. If you've got a $3,000 limit, then $1,000 is your absolute ceiling.
- Cash is king. Gather up the maximum down payment possible. The more money you put down on a home, the better.
- Be prepared. Put together a file folder with the following: pay stubs, or proof of self-employment income, list of debts and assets, and current bank statements. We can advise what you'll need.
- Start a dialogue. Let's discuss your plan, and get off on the right foot in your home buying journey!
The process of qualifying for a mortgage begins long before you decide to buy a home! But if you make a plan to improve your financial fitness... you'll have no shortage of lenders willing to compete for your business.