| Are you hoping to take advantage of the great | | | | underwriter varies in their approach and assessment, in |
| opportunities available in this market as a first time | | | | general, the less you owe, the better. Your credit |
| home buyer? Here are some items to evaluate and | | | | report will show if you've ever gone above your credit |
| pointers to help boost or maintain your credit score | | | | limit, which can negatively impact your credit score. |
| and credit worthiness. | | | | Boost your savings. As you're saving for your down |
| Check your credit report. Once a year you are entitled | | | | payment, add some extra 'padding' to your account. |
| to a FREE credit report from the three largest | | | | You're a less risky candidate if you still have financial |
| consumer reporting agencies: Experian, TransUnion, | | | | padding in your account after you close escrow. |
| and Equifax. Learn what your credit score is and | | | | Monetary gifts. Ensure you can explain where they |
| understand its ranking. Of course, the better credit you | | | | came from and whether you have to repay them. If |
| have, the more likely a mortgage company would be | | | | you received a $2,000 check from your aunt, be |
| to lend you money, among other factors. Keep in mind | | | | prepared to not only explain what it was for, but you |
| that if you've recently had your credit checked, you | | | | may need to ensure she's available to sign an affidavit |
| may request a copy of your report. There should be | | | | noting that it was a gift and that you aren't responsible |
| no additional cost to provide you with a copy. | | | | for paying it back. |
| Pay your bills on time. Ensure there aren't any | | | | Remember, anything you 'owe,' whether it be |
| outstanding bills that are to be paid or anything in | | | | insurance, utilities, car payments, child support, credit |
| collections. Oftentimes, late payments will show up on | | | | card debt or other, the more you owe, the more 'risky' |
| your credit report. If you're habitually late it may affect | | | | you are to a potential lender. You want to eliminate or |
| your credit worthiness. | | | | reduce what you owe to lower your risk level and |
| Pay off or at least pay down your outstanding credit | | | | boost your savings and other financial assets to |
| bills. Mortgage company underwriters are extremely | | | | enhance your credit worthiness. |
| conscientious about extended credit. Although each | | | | |