A higher FICO score will help you qualify for a lower mortgage interest rate, which will save you money. The credit score most lenders use is your FICO score, a weighted score developed by the Fair Isaac Corporation that takes into account your payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%).

And sometimes fraudulent activity or erroneous information will appear on your report, which can take months to correct. If you have a low score, you will need time to raise it. It’s a good idea to review your credit report and score yourself before you’re ready to apply for a mortgage. Your credit score is one of the first things a lender will check to see if you qualify for a loan. Follow these three steps to begin laying the foundation for your future home purchase today! It’s never too early to start preparing to buy a home. Lending requirements have become more rigorous in recent years, and changes to your credit history, debt levels, job type and other factors could impact your chances of approval. But we’ve outlined three simple steps to get you started on your path to homeownership.Įven if you’re a current homeowner, it’s a good idea to prepare in advance so you don’t encounter any surprises along the way. The requirements to secure a mortgage may seem overwhelming, especially if you’re a first-time buyer. By preparing in advance, you can avoid the common delays and roadblocks many buyers face when applying for a mortgage.

If you’re like the vast majority of home buyers, you will choose to finance your purchase with a mortgage loan. By: Carlo Sconza The Home Buyer's Guide to Getting Mortgage Ready Tags: Toronto Homesĭon’t wait until you’re ready to move to start preparing financially to buy a home.

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