 TITLE: How Can Millennials Get Mortgage Ready? CONTENT: Work on Paying Down Debt\n------------------------\nOver the life of a mortgage loan, even a small difference in interest rates can add up to tens of thousands of dollars in savings. A good credit score is key to getting the best interest rate and maximizing your savings. You can make a positive impact on your credit score by focusing on eliminating debt and consistently making your payments on time.\nMortgage lenders also heavily consider your debt-to-income ratio (DTI) when deciding whether to approve you and, if approved, what rates to offer you. DTI considers all your monthly debt obligations, so paying off car loans or student loans can help you improve this number. When reducing your debt, focus on paying down any debts that are in collections, as these can severely impact your credit score and chance of securing a mortgage. Once these debts have been brought current, work on eliminating credit card debt.\nFinally, set up automatic bill payments so you never miss a due date. Paying your bills on time is a crucial habit to form. All it takes is one late or missed payment to drag down your credit score—and those late payments will remain on your credit report for seven years. END