 TITLE: Do I Need Good Credit to Buy a Fixer Upper? CONTENT: How to Prepare Your Credit for a Mortgage Application\n-----------------------------------------------------\nYour mortgage is likely to be the largest loan you'll ever finance—the highest dollar amount and the longest loan term. For that reason, even a small difference in your interest rate can translate into dramatic savings over the life of your loan. To illustrate: A 30-year, $500,000 mortgage at 3.25% costs about $283,000 in total interest. If your interest rate jumps just 1.25%, the total interest over 30 years tops $412,000, or $129,000 more.\nSometimes the difference between a more affordable loan and an unaffordable loan is just a few points on your credit score. If you're planning to buy a home in the near future, it may pay to prepare your credit for getting a mortgage.\n*   **Check your credit score and report.** You want to know your credit score and credit history in advance so you can figure out which loans might work for you. You also want to make sure your credit report doesn't contain any inaccuracies you should dispute.\n*   **Look for quick ways to boost your credit score.** While you probably can't do a complete makeover on your credit in just a short time, you may be able to optimize it a bit by paying down credit card debt. If you have a record of on-time utility, telecom and streaming bills, Experian Boost™† could give you an instant score increase.\n*   **Don't apply for new credit.** This is not the time to apply for that rewards card you've been eyeing or take out a new car loan. Hard inquiries on your credit can temporarily lower your score. Having additional revolving debt will raise your credit utilization, and more debt overall drags down your debt-to-income ratio. Save the new credit applications for after your mortgage closes.\n*   **Pay every bill on time every time.** While you can't go back and fix your payment history, you can make sure you pay all your bills on time starting now. Your payment history is the single greatest factor in determining your credit score. END