Maintaining a healthy credit score is vital to securing a favorable mortgage rate and ensuring a smooth home-buying process. As a first-time homebuyer, here are essential tips to help you safeguard your credit score during this critical time. First and foremost, continue paying your bills on time. Timely payment history is a significant factor in your credit score. Ensure that your credit card payments, student loans, and any other debts are consistently paid by their due dates.
Avoid opening new credit accounts or taking on new debt during the home-buying process. Each new credit inquiry can temporarily lower your credit score. Focus on maintaining your existing credit lines instead. Keep your credit card balances low. High credit card utilization can negatively impact your credit score. Aim to keep your credit card balances below 30% of your credit limit. Paying down balances can have a positive effect on your credit score.
Monitor your credit report regularly. Request a free credit report from each of the three major credit bureaus annually and review it for inaccuracies. Dispute any errors promptly to keep your credit report accurate.
Remember to consult with your mortgage lender before making any significant financial decisions. They can provide guidance on how specific actions may affect your mortgage application and credit score.
By following these steps, you can maintain a strong credit score throughout the home-buying process, ensuring that you qualify for the best possible mortgage rates and terms.
To begin the process with OppFund, visit: www.oppfund.org/fresh-opportunity-mortgages/
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