 TITLE: How Can I Get Prequalified for a Mortgage Loan? CONTENT: How to Improve Your Chances of Getting a Mortgage\n-------------------------------------------------\nMortgage lenders tend to be pickier with borrowers than some other types of lenders, so it can be discouraging if you're not qualified for a loan or if the terms are unfavorable.\nWhether or not you think your credit score is in good shape, follow these steps to get your credit mortgage-ready before you submit an application:\n*   **Check your credit score and report.** Get free access to your FICO® Score☉ through Experian, plus access to your Experian credit report, which is updated every 30 days. You'll also be able to order a free credit report weekly from each of the three national credit bureaus through April 2021 via AnnualCreditReport.com. Normally, it's just once every 12 months for each free report.\n*   **Pay down existing debt.** Reducing your credit card debt helps lower your credit utilization ratio, which is a major factor in determining your FICO® Score. What's more, paying off credit cards or other loans in full means that monthly payment is no longer an obligation. The result is a lower debt-to-income ratio, which helps determine your basic eligibility for a mortgage loan and how much you can borrow if you qualify.\n*   **Look for ways to increase your income.** Another way to lower your debt-to-income ratio is by increasing your income, which is the denominator in that equation. Look for opportunities to take on extra work, and consider asking for a raise or consistent overtime hours. Additionally, you can include income earned from a side business. Just be ready to provide a lot more documentation for self-employment income.\n*   **Avoid borrowing leading up to and during the mortgage process.** Any new debt you take on will impact your ability to get a mortgage loan, as well as the capacity to make your payments. As such, it's critical that you avoid opening any new credit accounts for a handful of months before you start the prequalification process. Also, because mortgage lenders run another credit check shortly before closing, you'll want to avoid borrowing from other sources until you've closed.\nImproving your credit score can take time, especially if you've made some credit missteps in the past. But even a slightly lower interest rate could save you thousands or even tens of thousands of dollars on a mortgage. So unless you're forced to make a decision now, take your time and make sure your credit is in good shape before you get prequalified. END