Most mortgage lenders look hard at you financially as well as your credit worthiness. Some ways to position yourself for buying a home are:
- Have no late payments reported by your creditors
- Keep all credit account balances below 30% of the available credit
- Your monthly debt (payments) need to be less than 40% of your income
- Have a savings account
- Maintain a credit score above 620
If at all possible, talk to a mortgage lender 6 months before you plan to buy a home. Use a local lender. Face to face contact is an awesome tool for you to use. There are time when there is a “ghost” showing up on your credit report. Most mortgage lenders will help you get these issue fixed.