Buying a home is an exciting journey, but before you start touring houses, there are two important steps that can make the process smoother: checking your credit score and getting pre-approved for a mortgage. These steps help you understand what you can afford and show sellers you’re a serious buyer.
1. Know Your Credit Score
Your credit score plays a big role in determining your mortgage eligibility and interest rate. A higher score can help you secure a better loan with lower monthly payments. Before applying for a mortgage, check your score and review your credit report for any errors that might affect your approval.
Tips to Improve Your Score Before Applying:
✔ Pay down outstanding debt
✔ Make all payments on time
✔ Avoid opening new credit accounts before applying for a mortgage
2. Get Pre-Approved for a Mortgage
Pre-approval is a process where a lender reviews your financial situation and determines how much they’re willing to lend you. This helps you:
✅ Understand your budget – Know what price range you should be looking at
✅ Strengthen your offer – Sellers see pre-approved buyers as serious and financially ready
✅ Speed up the closing process – Since much of the paperwork is already completed
3. How to Get Pre-Approved
To get pre-approved, you’ll typically need:
Proof of income (pay stubs, tax returns)
Employment verification
Credit history
Bank statements
Identification
Lenders will evaluate your debt-to-income ratio and overall financial health before issuing a pre-approval letter.
Final Steps
Taking these steps before house hunting can help you feel more confident in your search and improve your chances of securing your dream home.
Have questions about the home-buying process? Reach out anytime—happy to share helpful insights!