 TITLE: How to Get Your Credit Ready for a Mortgage CONTENT: Stop Applying for New Credit and Limit Big Purchases\n----------------------------------------------------\nAnytime you seek new credit or take on new debt, the statistical risk that you'll fail to repay your debts—as it's perceived by lenders and credit scoring models—tends to climb. For that reason, a credit check associated with a credit or loan application could cause your credit scores to drop slightly, although they may not drop at all. Scores also tend to dip when you accept a new loan or credit offer. These reductions are commonly just a few points each, and your scores typically recover within a few months as long as you keep responsibly managing your credit, but even slight drops should be avoided when you're preparing for a mortgage.\nBeyond credit scores, mortgage lenders consider your total debt load in relation to your income, called your debt-to-income ratio, when deciding how much they're willing to lend you. For that reason, it makes sense to avoid making any major purchases with your credit cards leading up to a mortgage application.\nEven if you can pay cash, it's wise to avoid large non-emergency purchases in the year or so preceding a mortgage application, since lenders will also consider your savings—and because putting cash reserves toward the down payment on your home instead of spending it now could save you thousands of dollars over the life of your mortgage. END