 TITLE: Should You Buy a Condo or a House? CONTENT: Prepare Your Credit Before Buying a Condo or a House\n----------------------------------------------------\nAs soon as you start dreaming about a big yard or that 24-hour condo concierge, it's time to think about your credit. If you start prepping early, you can secure a lower interest rate when you lock down a mortgage—and make sure that you'll qualify for the loan in the first place.\n*   **Check your credit score.** This will give you an idea of how you'll match up with lenders—and help you gauge how much you can potentially improve your score. You can check your score for free with Experian to start.\n*   **Check your credit report****.** Review your reports from all three credit bureaus (Experian, TransUnion and Equifax) to catch any mistakes or red flags, such as high balances, that can impact your creditworthiness.\n*   **Don't apply for new credit.** That travel rewards card might have a great mileage bonus, but applying for a new line of credit triggers a hard inquiry on your credit report, sometimes causing a temporary drop in your score. In general, it's best to wait until after you've secured a mortgage to apply for any additional credit.\n*   **Avoid big purchases.** Your credit score suffers the most under two conditions: late payments and high balances. Paying off debt and curtailing big buys can reduce your credit utilization ratio (the percentage of total revolving credit you're currently using) for a better score. Plus, too many debts can increase your debt-to-income ratio, making you less attractive to lenders.\nStart building and improving your credit at least six months before you plan to apply for a mortgage. An improved credit score could save you thousands or even tens of thousands on your mortgage, so it's worth the time and effort to improve it, even slightly. (Saving up early for your down payment can also help reduce your costs over time.) END