 TITLE: Average Age to Buy a House CONTENT: How to Get Your Credit Ready for a Mortgage\n-------------------------------------------\nAnother thing to consider before you start home shopping is your credit. Having good credit is important in the homebuying process, since any red flags in your credit history could cause your mortgage application to be denied, or result in paying a higher interest rate on your loan. If you worry your credit situation will limit your homebuying possibilities, take time to improve your score before applying for a mortgage. Remember, a mortgage is one of the largest loans a person can take out, so the bank will scrutinize your credit and income closely to evaluate how qualified you are to take on that type of debt.\nThere is no universal credit score minimum that mortgage lenders require. Rather, the score you need will depend on your lender and the type of loan you apply for. For example, a conventional loan—one that is not insured by the government—may have a minimum score requirement ranging from 620 to 660, depending on the lender. Some mortgages, such as those backed by the FHA, may only require a score of 500 if you're able to put at least 10% down on the purchase.\nOn top of using your credit score to approve you for the loan, lenders will also use your score to determine your interest rate. Typically, consumers with higher scores can lock in lower interest rates and save thousands of dollars over the life of their loan.\nIf you're considering buying a home and think you may need to first work on your credit, check out these tips for improving your scores:\n*   **Check your credit reports and scores.** The first step to figuring out how you can improve your credit is by looking through your reports to identify potential areas of improvement. You can get your credit reports for free from all three major credit bureaus (Experian, TransUnion and Equifax) at AnnualCreditReport.com. Look for any inaccurate information and report it to the appropriate credit bureaus. Removing false information can take time, so this is a process you want to kickstart a few months before you need to apply for credit.\n*   **Stop applying for new credit.** As you shop for a new home, limit the number of credit applications you submit. When you apply for new credit—regardless of whether it results in a new account or not—your credit could be impacted. A last-minute change to your credit could disrupt the mortgage underwriting process, so it's advised not to make any changes to your credit until the purchase of your new home is complete.\n*   **Reduce credit card debt.** Reducing credit card debt will help you decrease your credit utilization ratio. Your credit utilization ratio counts for 30% of your credit score, and improving this aspect of your credit could help you quickly improve your score.\n*   **Continue to make on-time payments.** Payment history is the most important aspect of your credit, and even one late or missed payment could have a negative impact on your scores. To maintain the best scores, be vigilant to make sure you do not miss payments or pay any bills late. A newly recorded delinquency in your credit report could be a red flag for a lender and could cause them to reconsider the terms of your mortgage.\nAs you work to improve your scores, consider using Experian's free credit monitoring service to track your progress. As your credit changes, you'll be notified and will see how certain things impact your score. You'll also be able to detect fraud sooner as it will alert you when changes occur in your credit reports. END