Your credit is one of the key factors in your loan approval – the better your credit score, the better your loan terms. What can you do to prep for buying your first home? Here are my recommendations:

Pay off debt. A great place to start is to get your credit card balance as low as possible.
Avoid opening any new credit accounts (like a credit card or auto loan).
Avoid major purchases that increase your outstanding credit card balance. I know, it’s tempting to invest in new furniture for your soon-to-be home but hold off until you have the keys to your new house in hand.

The lender’s mortgage decision is based on your credit score and your debt-to-income (DTI) ratio, which is the percentage of your income that goes towards monthly debt payments. So, the higher your credit score and the lower your DTI, the better your interest rate and financing terms. Request a free credit report from one of the three main credit bureaus: Equifax, Experian, and TransUnion. Review the credit report and double-check that it doesn’t have any errors.

Real Estate - Imer Anaya-González - BrokerNation Doral