Get your financial house in order
Since most people, especially first-time home buyers, must finance part or all of their home purchase with a mortgage, it is very important to have a good credit rating. The best loan terms are reserved for those individuals with the best credit history. The worse your credit rating, the higher your interest rates will likely be, and the more points you may have to pay to secure your loan.
Frequently, people don’t start to think about credit until they are ready to purchase a home. For many, this is too late. It is often recommended that for at least one year prior to purchasing your home, you should assure that every credit card bill, rent and utility check, car payment and other debt is paid in full and on time. It is also a good idea to get a copy of your credit report from one or all of the three credit reporting agencies: Equifax, www.equifax.com; Experian, www.experian.com; or TransUnion, www.transunion.com. This will let you check for any discrepancies and correct any errors that may have a negative impact on your ability to secure financing.