 TITLE: What to Know About How Mortgage Interest Works CONTENT: How Does Your Credit Score Affect Mortgage Interest Rates?\n----------------------------------------------------------\nYour credit score is an important indicator of how you've managed your debts in the past, so it's a crucial factor in determining whether you qualify for a mortgage and what your interest rate will be.\nMost mortgage lenders will have a minimum credit score requirement, which can vary by lender and the type of loan you're applying for. Just because you have a high credit score, though, doesn't mean you're eligible for a low rate. Lenders will also review your credit report, debt-to-income ratio and several other pieces of information to calculate your rate.\nBecause your credit score is such an important factor in the mortgage process, it's crucial to take steps to get your credit ready for a mortgage. Ways to do that include:\n*   Check your credit score to see where you stand and your credit report to determine if you need to address specific areas of your credit history.\n*   Pay down credit card balances and other debts.\n*   Avoid applying for credit in the months leading up to applying for a mortgage.\n*   Make it a priority to pay your bills on time every month.\n*   Dispute inaccurate information on your credit reports, if applicable.\nGetting your credit ready for a mortgage can take time, but again, even a small reduction in your interest rate could save you thousands of dollars. END